SERIES-6 practice question 22 of 35
The profile of the Invesco Utilities Fund stipulates that 80% of its funds will normally be invested in stocks of firms in utilities-related industries. This suggests that the Invesco Utilities Fund is:
Full set: 325 questionsCorrect Answer:
A. a sector fund.
Explanation
Invesco Utilities Fund profile suggests that the fund is a sector fund, which is a specialized fund that invests mainly in stocks within a specific industry. This does not mean that it is non -diversified. As long as it is invested in a portfolio of securities with a value exceeding 75% of its assets such that no more than 5% is invested in any one firm and no more than 10% of any firm’s voting stock is owned, it is considered to be a diversified management company.
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