Specialized funds focus on nontraditional asset classes that allow you to potentially gain exposure to very narrow segments of the market or very specific investing methodologies.
Reasons to consider specialized funds
- Pursue specific opportunities
- Higher potential risk/reward ratio
- Part of a diversified strategy
Types of specialized funds
Real estate funds invest in securities with significant exposure to the real estate market, including mortgage originators and brokers, construction companies, and real estate investment trusts (REITs). Learn more about types of Fidelity real estate funds.
Alternative funds can provide unique diversification benefits. That's because alternative investment strategies—like absolute return, market neutral, and commodity and currency-related funds—do not move in tandem with more traditional asset classes, like equities and fixed income. Learn more about alternative funds.
Commodity funds invest in raw materials such as agriculture, energy, precious metals, or a combination of raw materials. These funds may invest directly in actual commodities or in commodity-linked derivative instruments. Learn more about types of Fidelity commodity funds.
|Inverse and leveraged||
These funds seek to deliver the opposite of the performance of an index or benchmark, deliver multiples of the performance of an index or benchmark, or both. As with any mutual fund, investors in leveraged or inverse mutual funds should obtain and carefully read the applicable prospectuses before investing. Learn more about inverse and leveraged funds.
These funds take both long and short positions in different securities. The goal is to create a portfolio that attempts to outperform a chosen benchmark regardless of whether the overall market moves up or down. Learn more about market neutral funds.