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.

Related Terms

Asset Allocation
Diversification
Mutual Fund
Portfolio
Style
Style Drift
More Related Terms

Related Links

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