Invesco has divided its universe of funds into nine categories, ranging from international to specialty funds.

Of the nearly 50 Internet specialty funds that sprang up by early 2000, only 12 remain, according to Morningstar.

The specialty funds were weeded out, leaving diversified domestic funds.

Its investment network also includes 80 specialty funds.

Invesco plans to introduce a new specialty fund next year.

A large part of the competition in specialty funds is scattered and determined by a firm or a manager's specialty.

National brokerage firms also develop strong specialty funds, but not many.

Despite an increase in the number of specialty funds in the last 10 years, more than 40 percent have less than $30 million in assets.

But some funds lagged even in areas where other specialty funds were soaring.

But Ms. Vujovich said specialty funds would not protect investors against sluggish interest rates or markets.