The two sectors are currently among the largest in the IA sector classification scheme with 465 funds in IA Global and 329 in IA Specialist. 

The new sectors will include India/Indian Subcontinent, Healthcare and Infrastructure.

The IA says the creation of the new sectors will affect around 150 funds from the two sectors which will move into the new sectors.  

New country - regional equity sectors:  

• Latin America
• India/Indian Subcontinent
• Global Smaller Companies

Industry sectors: 

• Financials and Financial Innovation
• Healthcare

 Alternative investment: 

• Infrastructure
• Gold and Precious Metals
• Commodity/Natural Resources

The trade body says the decision to create the new sectors was taken after industry and wider public consultation. This changes will mean the number of sectors will increase from 51 to 59 covering over 4,100 funds.

The new sectors follow the inclusion of over 530 exchange traded funds (ETFs) into the IA’s sectors in April. 

Miranda Seath, head of market insight at the Investment Association, said: “As the retail funds market in the UK evolves, so too do our sectors. The inclusion of ETFs in our sectors has been a good opportunity to review the future of two of our largest sectors, IA Global and IA Specialist.

"The eight new sectors have the ambition to support the long-term financial aims of the investors they serve and each includes a meaningful number of funds with similar investment objectives - helping savers and their advisers to better navigate and compare the funds on offer in the UK.”