Diversified Common Stock Fund

DEFINITION of 'Diversified Common Stock Fund'

A mutual fund that invests its assets in a relatively large number and variety of common stocks. The investment manager for this type of fund is not restricted in terms of company size or investment style.



BREAKING DOWN 'Diversified Common Stock Fund'

A diversified common stock fund will generally tend to a portfolio of stocks in the range of 100 or more issues with large cap, mid cap and small cap company sizes that reflect a combination of value, growth, and blended (value-growth mix) investment styles.

RELATED TERMS
  1. Style

    The investment approach or objective that a fund manager uses ...
  2. Investing Style

    In the context of stock mutual fund investing, refers to using ...
  3. Style Drift

    The divergence of a mutual fund from its stated investment style ...
  4. Flexi-Cap Fund

    A type of mutual or hedge fund that is not restricted to investing ...
  5. Asset Size

    The total market value of the securities in a mutual fund's portfolio. ...
  6. Blend Fund

    A category of equity mutual funds with portfolios that are made ...
Related Articles
  1. ETFs & Mutual Funds

    Mutual Funds: Does Size Really Matter?

    The growth of mutual funds isn't always cause for celebration. Read on to find out why.
  2. Managing Wealth

    Mutual Funds: Different Types Of Funds

    No matter what type of investor you are, there is bound to be a mutual fund that fits your style. According to the last count there are more than 10,000 mutual funds in North America! That means ...
  3. ETFs & Mutual Funds

    The Benefits of Picking Mutual Funds Over Individual Stocks

    Learn about the advantages of investing in mutual funds rather than individual stocks, including the benefits of affordability, oversight and diversification.
  4. ETFs & Mutual Funds

    What's an Equity Fund?

    An equity fund is a mutual fund that mainly invests in stocks.
  5. Trading

    Mutual Fund Style Drift Not Always A Bad Thing

    Style drift has a bad reputation, but it can be a sign that your fund is thriving.
  6. Managing Wealth

    Is Your Investing Style Hot, Or Not?

    Don't let your portfolio construction fall out of fashion.
  7. ETFs & Mutual Funds

    Digging Deeper Into Mutual Fund Names

    Go beyond the name and find out if that fund fits into your portfolio.
  8. Investing

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  9. ETFs & Mutual Funds

    FAVFX: The Top All Cap Value Mutual Funds

    Understand the benefits of investing in value stocks across all market cap categories, and learn the best all-cap value mutual funds for 2016.
  10. ETFs & Mutual Funds

    The 4 Best American Funds for Growth Investors in 2016

    Discover four excellent growth funds from American Funds, one of the country's premier mutual fund families with a history of consistent returns.
RELATED FAQS
  1. How do I calculate the loan-to-value ratio using Excel?

    Learn what a mutual fund and a money market fund are, and understand the differences between each and how they serve various ... Read Answer >>
  2. Why do mutual funds require minimum investments?

    Learn how funds usually set minimum investments to keep away small, short-term traders from impacting the cash flow and the ... Read Answer >>
  3. Can mutual funds only hold stocks?

    Learn about which types of mutual funds consist of only stocks, which may include stocks in addition to other assets and ... Read Answer >>
  4. How are blue-chip stocks similar to mutual funds and exchange-traded funds (ETFs)?

    Understand the primary differences between making investments in blue-chip stocks, mutual funds and exchange-traded funds ... Read Answer >>
  5. Are small cap companies a safer investment than large cap companies?

    Learn about the safety of small caps compared to large caps. Find out which key measures they differ on and which to pick ... Read Answer >>
  6. What is the difference between a blend fund and a balanced fund?

    As both "blend"and "balanced" describe the particular asset mix of mutual funds, determining the exact distinctions between ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center