Diversified Fund

What Does Diversified Fund Mean?
An investment fund that contains a wide array of securities to reduce the amount of risk in the fund. Actively maintaining diversification prevents events that affect one sector from affecting an entire portfolio, make large losses less likely.

Investopedia explains Diversified Fund
A diversified fund contrasts with specialized or focused funds, such as sector funds, which focus on stocks in specific sectors such as biotechnology, pharmaceuticals or utilities, or in particular regions such as Asia or Europe.

Related Terms

Diversification
Fund Manager
Market Capitalization
Mutual Fund
Sector Fund
Systematic Risk
Unsystematic Risk
More Related Terms

Related Links

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