Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Diversified Common Stock Fund

What it is:

A diversified common stock fund is a type of mutual fund that invests exclusively in shares of common stock.

How it works (Example):

Diversified common stock funds may comprise any combination of common stocks. The portfolio composition usually includes common stock issued by blue-chip and other reputable and stable companies of varying market capitalization size. The risk level associated with a given portfolio is dependent upon the common stocks chosen.

Why it Matters:

Diversified common stock funds provide fund managers with the opportunity to employ a wide range of investment strategies provided that the investments remain exclusively in shares of common stock