What is Focused Fund?
A fund that contains a large holding of a small number of stocks.
Also known as “”underdiversified fund”” or “”concentrated fund””. Read more for examples and further explanation including related video clips and also comments
Example 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.
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