Focused Fund
Funds that contain a large holding of a small amount of stocks.
Investopedia Commentary
There are three general types of focused funds:
1. Those who hold a portfolio concentrated in approximately 10 to 30 stocks.
2. Those who concentrate their holdings within 1 to 3 sectors.
3. Those who hold a large number of different stocks, but a large portion of their total portfolio value is concentrated in a very small number of stocks. Also known as "underdiversified funds" or "concentrated funds."
Related Links
Do Focused Funds Provide a Better Outlook?
See also: Asset Allocation, Diversification, Mutual Fund, Portfolio