The Investment Association has created eight new sectors after consulting the industry and wider public.
The sectors will be created from the global and specialist sectors which currently include 465 and 329 funds respectively.
The new sectors will include three regional equity sectors (Latin America, India/Indian subcontinent, and global smaller companies), two industry sectors (financials and financial innovation, and healthcare) and three alternative investment approaches (infrastructure, gold and precious metals, and commodities and natural resources).
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.”
The IA said it is aiming to make it easier for savers and advisers to find information and make like-for-like comparisons.
The proposal was part of the IA’s review of its sectors to ensure they remain relevant and fit for purpose for investors, and to accommodate the 500 ETFs set to join.
Last month saw the inclusion of over 530 ETFs into the IA’s sectors, with the specialist and global sectors admitting 79 and 71 ETFs respectively.
The decision was made after the number of ETFs looking to join the group would have seen its size increase by 50 per cent.
The new sectors will come into effect on 13 September this year.