A Technology Fund is classified as which type of fund?

• A. Commodity
• B. Managed
• C. Specialist
• D. Multi-asset

Answer: (C)

A Technology Fund is classified as a specialist fund because it focuses primarily on investing in technology-related companies or sectors. Specialist funds are designed to concentrate on specific industries, sectors, or themes, allowing investors to allocate their capital to areas they believe will perform well based on industry trends or advancements. In this case, the technology sector is a dynamic and rapidly evolving area, making it a popular choice for specialization.

Other types of funds mentioned, such as managed funds, typically involve more diversified investment strategies across various asset classes rather than concentrating on a single sector. Commodity funds, on the other hand, primarily invest in physical goods or commodities, while multi-asset funds spread investments across different asset classes like stocks, bonds, and other securities to achieve diversification and balance risk. Thus, the unique focus of the Technology Fund on a specific sector aligns it with the characteristics of a specialist fund.