Diversified Fund

Diversified Fund

A fund that has invested in many different types of securities in order to hedge against the securities already in the fund. Ideally, this reduces the risk inherent in any one investment, and increases the possibility of making a profit, or at least avoiding a loss. This may also reduce the expected return on the fund, but it depends on the level and type of diversification. There are two main types of diversification that a fund may utilize. Horizontal diversification involves investing in similar investments. Examples include investing in several technology companies or in different types of bonds. Vertical diversification involves investing in very different securities; for example, one may choose to invest in securities traded in different countries, or in both winter clothing and swimsuit companies. Both types of diversification may be as broad or as narrow as the fund's manager chooses. In general, broader diversification equates to less risk and less return.
References in periodicals archive ?
Legal & General Investment Management (LGIM) is delighted to announce that its Diversified Fund has passed Au1 billion in assets under management, with LGIM now managing a combined Au2.
Daley, executive vice president of Richman, "Fund 89 was a nationally diversified fund while Fund 95's targeted acquisitions were limited to New York City.
The complaint filed in Los Angeles Superior Court claims Tom Kelly, a manager of First California Diversified Fund LLC, used the names of three American Indian tribes to convince people to invest $25,000 a share for an interest in the casino.
Therefore, The Fairholme Fund is exposed to greater individual stock volatility than a diversified fund.
A diversified fund can change sector weightages depending on the fund manager's research, says Jayesh Gandhi, executive director, Morgan Stanley Investment Management.
The letters come from a company called First California Diversified Fund, which lists a Santa Monica Boulevard address.
Mutual funds are made up from a number of stocks or bonds, giving the investor a broadly diversified fund and guarding against the volatility of a particular stock,'' said Vern Kozlen, executive vice president of City National Investments.
A non-diversified fund may concentrate its assets in fewer individual holdings than a diversified fund.
Therefore, the Fund is exposed to greater individual stock volatility than a diversified fund.
Meehan, replaced Duff GP Holdco LP as managing member and investment manager for the Azimuth Diversified Fund, LLC ("Azimuth").
The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund.
As such, investing in the Funds may involve greater risk and volatility than investing in a more diversified fund.

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