Diversified Common Stock Fund

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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.

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RELATED FAQS
  1. How do dividends affect net asset value (NAV) in mutual funds?

    Distribution of dividends reduces the net asset value (NAV) of mutual fund shares. However, this doesn't mean that fund investors ... Read Full Answer >>
  2. Are mutual funds considered retirement accounts?

    Unlike a 401(k) or Individual Retirement Account (IRA), mutual funds are not classified as retirement accounts. Employers ... Read Full Answer >>
  3. Do mutual funds invest only in stocks?

    Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the ... Read Full Answer >>
  4. Why are mutual funds not FDIC-insured?

    Mutual funds are not Federal Deposit Insurance Corporation (FDIC)-insured because money invested in funds are not considered ... Read Full Answer >>
  5. Can mutual funds invest in commodities?

    Mutual funds can invest in commodities. In fact, mutual funds may provide a better way for investors to gain exposure to ... Read Full Answer >>
  6. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>

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