Sector funds Sector funds invest exclusively in companies belonging to one particular industry. You may choose to invest in a sector that you are familiar with or believe will do well. The technology industry is a good example of a sector fund. Other examples include the automobile industry, health care, and utilities. Value funds Value funds invest in stock of companies that are generally considered sound but whose share price is considered to be undervalued.
Some investors choose to invest in companies located in a particular country or region of the world.
You may believe that this particular geographical location is destined to do well, and you want to be a part of it. Examples of geographical funds include U.S. domestic market funds, Asian or European funds, global funds, or emerging market funds. Separate from geographical funds are international funds. These invest in non-U.S. companies in one or more foreign countries throughout the world. These are only general guidelines about the mutual fund industry.