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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • fund — 1 n 1: a sum of money or other resources whose principal or interest is set aside for a specific objective cli·ent security fund: a fund established by each state to compensate clients for losses suffered due to their attorneys misappropriation… …   Law dictionary

  • Diversified Common Stock Fund — A mutual fund that invests its assets in a relatively large number and variety of common stocks. The investment manager for this type of fund is not restricted in terms of company size or investment style. A diversified common stock fund will… …   Investment dictionary

  • fund — A fiscal and accounting entity with a self balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and charges therein, are recorded and segregated to carry on specific… …   Financial and business terms

  • Fund — A source of money that will be allocated to a specific purpose. A fund can be established for any purpose whatsoever, whether it is a city government setting aside money to build a new civic center, a college setting aside money to award a… …   Investment dictionary

  • diversified investment company — An investment vehicle such as a mutual fund that invests in an assortment of securities. Bloomberg Financial Dictionary …   Financial and business terms

  • diversified investment company — Fin a mutual fund with a variety of types of investments …   The ultimate business dictionary

  • Index fund — An index fund or index tracker is a collective investment scheme (usually a mutual fund or exchange traded fund) that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held… …   Wikipedia

  • Focused Fund — A mutual fund which rather than holding a diversified mix of equity positions focuses on a limited number stocks in a limited number of sectors; unlike many funds which hold positions in excess of 100 companies, focused funds generally will hold… …   Investment dictionary

  • Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… …   Wikipedia

  • TerraVest Income Fund — Infobox Company company name = TerraVest Income Fund company company type = Public (tsx|TI.UN) company slogan = foundation = Vegreville, Alberta location = Vegreville, Alberta key people = Dale Laniuk, President CEO, Tom Kileen, CFO revenue = )… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.