focused fund

Definition

A mutual fund that holds large positions in a small number of stocks. While most mutual funds hold 100-200 positions, a focused fund will usually hold only 10-30 positions. They emphasize quality over quantity, and would rather hold just the stocks they have the most confidence in, rather than diversifying across a large number of holdings. In theory this should enable them to more thoroughly research and track their holdings, although they lose the benefits of diversification and tend to be more volatile than other mutual funds.

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
focus report diversified fund