Diversified Fund

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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 ?
For instance, in 2008, balanced funds lost 42% value on an average, while equity diversified funds fell 53%.
Little wonder then that diversified funds are attracting clients in ever greater numbers.
These companies include Wealth Management Groups, Private Banking Groups, Diversified Funds, Consumer Finance, and Health Care Companies.
Comisky said the Bar made money in most of the diversified funds it invested in, but had the best return on those investing in small cap and large cap stocks.
The Fairholme Fund is non-diversified, which means that The Fairholme Fund invests in a smaller number of securities when compared to more diversified funds.
According to Srividhya Rajesh, fund manager at Sundaram BNP Paribas Mutual Fund, focused funds are meant for investors who are familiar with equities; first-timers are better off with diversified funds.
Non-diversified funds concentrate assets in fewer holdings than diversified funds.
The Fund is non-diversified, which means that the Fund invests in a smaller number of securities when compared to more diversified funds.
The Fairholme Fund is non-diversified, which means that it invests in a smaller number of securities when compared to more diversified funds.
The Fairholme Focused Income Fund is a non-diversified mutual fund, which means that the Fund invests in a smaller number of securities when compared to more diversified funds.
Select Sector SPDRs bear a higher level of risk than more broadly diversified funds.
The Funds are non-diversified meaning they concentrate their assets in fewer holdings than diversified funds.

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