Types of investment companies: sectors
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Investors can choose which assets to back and there is a wide range of choices. Investment companies can offer global opportunities or provide access to specific regions, countries and industry sectors.
Some funds only invest in stocks issued by companies that can be bought on a stock exchange (listed stocks), some invest in debt, some unlisted stocks (private equity), some real estate and some buy other assets such as wind farms and ships. Some multi-asset funds may invest in a wide range of these investment types. Others focus on a particular niche like technology, social housing, small businesses, or those paying high incomes.
The Association of Investment Companies (AIC) classifies investment companies into sectors. Investment company sectors are generally defined by the type of assets the investment company invests in, where the investments are located, and what the investment company is trying to achieve. For example, the AIC classifications separate funds focused on growth, growth and income, and income. QuotedData has a page for each sector so you can compare similar funds.
Aberdeen Standard Investments is one of the guide’s kind sponsors