Targeted investments refer to a strategy of investing in a specific sector, industry or type of security with the goal of achieving a specific investment objective. This strategy is also known as sector investing, thematic investing, or niche investing. Targeted investments can be made in a variety of sectors such as technology, healthcare, renewable energy, or specific industries such as real estate, or even specific types of securities such as bonds or commodities.

Targeted investments can have a significant impact on portfolio strategy by providing a way for investors to gain exposure to specific sectors or industries that they believe have strong growth prospects. For example, an investor who believes that technology companies will continue to grow in the future, may choose to invest in technology-related companies or technology-related exchange-traded funds (ETFs) in order to gain exposure to that sector.

Targeted investments can also help investors to achieve specific investment objectives. For example, an investor who is looking for steady income may choose to invest in bonds or high-yielding stocks, while an investor who is looking for long-term growth may choose to invest in technology companies or companies in emerging markets.

Additionally, targeted investments can help investors to manage risk by reducing the volatility of their portfolio. For example, an investor who is looking to reduce the risk of a downturn in the stock market may choose to invest in bonds, which tend to be less volatile than stocks.

However, targeted investments also have some limitations. One of the main drawbacks is that they can be risky, especially if the investor's predictions about the specific sector or industry do not materialize. Additionally, targeted investments can be more difficult to manage than a diversified portfolio, as the investor needs to keep a close eye on the specific sector or industry in order to make informed investment decisions. Additionally, targeted investments can result in a lack of diversification, which can increase the risk of portfolio.

In summary, targeted investments refers to a strategy of investing in a specific sector, industry or type of security with the goal of achieving a specific investment objective. It can help investors to gain exposure to specific sectors or industries that they believe have strong growth prospects and achieve specific investment objectives. Additionally, targeted investments can help investors to manage risk by reducing the volatility of their portfolio. However, it also has some limitations such as risks, difficulties to manage and lack of diversification.