For example, there are sector funds that invest in high tech, biotech or consumer goods companies. Since these funds only invest in one sector, they are not considered diversified. If their sector of the economy hits hard times, they are likely to underperform the broader, more diversified funds. These are funds that invest in foreign markets. These funds may invest in large cap or small cap stocks or specific industries.
Funds exist for regions of the world such as Southeast Asia, Europe or Latin America.
They also exist for many individual countries. The details are discussed in their investment objective statements. As previously mentioned, most fund houses charge fees for lending you their expertise. Fees come in many forms and you should check these carefully before investing, since they often reduce the returns on your investment. Below are explanations of fees that are commonly charged to many mutual fund investors.