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. Mutual Funds & ETFs

    Mutual Fund Categories

    By Richard Loth (Contact | Biography)"Mutual funds aren't horses. You don't pick them by name, color or the celebrity who is involved in the ownership group." - Chuck Jaffe, MarketWatch.com, ...
  2. Mutual Funds & ETFs

    Mutual Fund Asset Size

    By Richard Loth (Contact | Biography)Bigger is not necessarily better when it comes to the size of a mutual fund. The key to investment quality lies in the compatibility of a fund's asset size ...
  3. Mutual Funds & ETFs

    Fund I-Q Number 1: Investing Style

    By Richard Loth (Contact | Biography)An accurate determination of a mutual fund's investment objective is important for several reasons: When building an investment portfolio, it helps ...
  4. Mutual Funds & ETFs

    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 ...
  5. Professionals

    Investment Strategies

    CFA Level 1 - Investment Strategies. This section covers various styles of investment strategies. Learn the differences between growth, value, sector and index strategies.
  6. Mutual Funds & ETFs

    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.
  7. Mutual Funds & ETFs

    What's an Equity Fund?

    An equity fund is a mutual fund that mainly invests in stocks.
  8. Options & Futures

    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.
  9. Mutual Funds & ETFs

    Digging Deeper Into Mutual Fund Names

    Go beyond the name and find out if that fund fits into your portfolio.
  10. Mutual Funds & ETFs

    Fund I-Q No.3: Size and Style Compatibility

    By Richard Loth (Contact | Biography)As a fund investment quality, the asset size issue is really a question of at what point is a fund too big. There is no unequivocal answer for investors to ...
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. 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 >>
  6. Are mutual funds better than single stocks?

    Learn the advantages of investing in mutual funds over investing in individual stocks. These advantages include reduced risk ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center