 |
Definition of 'Diversified Fund'
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.
|
-
Learn how to spot over-diversification in your portfolio and find out why some financial advisors are motivated to do it.
Read More »
-
Without this risk-reduction technique, your chance of loss will be unnecessarily high.
Read More »
-
If you diversify too much, you might not lose much, but you won't gain much either.
Read More »
-
|
|
