Is it risky to invest in sector funds and hold them for several months?
Like individual stocks, sector funds can be volatile investments particularly when viewed in isolation over short time frames. Volatility however reduces when several sector funds are grouped together. Rather than take sector funds in isolation, we take a portfolio approach to investing in them. We offer two model portfolios: AlphaProfit Core Portfolio and AlphaProfit Focus Portfolio. We tend to think of the investments that track an AlphaProfit model portfolio as a customized, fully-invested mutual fund created using a group of sector funds. We endeavor to add value by selecting sectors with prospects for outperforming broad averages like the Dow Jones Wilshire 5000 Total Market Index.
