An important consideration when investing is to look at the investment objective of a company and what and where it is investing its assets.
There are a wide range of investment companies with exposure to many different industries and regions of the world, and with varying objectives.
The AIC classifies all investment companies into sectors. The classification framework provides a way of grouping companies with common characteristics to facilitate search and comparison within the investment company sector. Classifications are based on a combination of regional/industry focus and the company's investment objective. It is important to remember that any grouping of companies will have its flaws as no two companies are ever the same.
The AIC continually monitor the sector classification system and it is overseen by the AIC Statistics Committee which is made up of industry related individuals.
The characteristics of each sector is a good place to start when choosing which company to invest in, however, it is worth remembering that each company is different and that, when investing in the stock market, there are no guarantees as to the level of return you will achieve from your investment.
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