Diversified Fund

What does it 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 Says... 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.

Terms Related Links

Diversification
Fund Manager
Market Capitalization
Mutual Fund
Sector Fund
Systematic Risk
Unsystematic Risk

Terms Related Links
Financial Concepts - Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear.

Special Feature: Mutual Funds - Mutual funds are an inexpensive and easy way to benefit from diversification and professional management. See our mutual fund feature for everything you need to know.

The Importance Of Diversification - Without this risk-reduction technique, your chance of loss will be unnecessarily high.

The Dangers Of Over-Diversification - We help to make clear the fine line between diversifying and overstretching your portfolio.

Mutual Fund Basics Tutorial - Learn about the basics - and the pitfalls - of investing in mutual funds.

Coattail Investor - Explore what stocks the world's top mutual funds and portfolio managers hold!





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