Mutual Fund “Diversification”
Diversified Funds – Think: 75 – 5 – 10. The Investment Company Act of 1940 has a bunch of rules, which define what mutual funds are and sets guidelines as to how they can behave and structure themselves. A diversified fund means that the fund is exposed to many areas. Energy, Telecommunications, the Consumer, Banks, Technology, etc.
In theory, a diversified fund is less volatile than a non-diversified fund. For a fund to qualify to be able to advertise...
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