Risk, Return, And Diversification Of Specialty Mutual Funds

Abstract

This study examines the risk, return, and diversification of specialty mutual funds compared to traditional mutual funds. Until recently, lack of data has precluded examination of the performance of a number of categories of specialty funds. Over the period studied, specialty funds as a whole appeared to earn returns comparable to those of traditional equity mutual funds. On the other hand, most categories of specialty funds were found to have greater total risk and retain significantly more unsystematic risk than traditional equity mutual funds.