Focused Fund
What Does Focused Fund Mean?
A fund that contains a large holding of a small number of stocks.
Also known as "underdiversified fund" or "concentrated fund".
Investopedia explains Focused Fund
There are three general types of focused funds:
1. Those that hold a portfolio concentrated in approximately 10-30 stocks
2. Those that concentrate their holdings within one to three sectors
3. Those that hold a large number of different stocks, but a large portion of the total portfolio value is concentrated in a very small number of stocks.