A focused fund is a type of mutual fund that is smaller in scope and less diversified than some of its mutual fund brethren. Like a focus on tech companies, or emerging national markets, or currencies, or companies with fat dividends...
For the most part, focused funds tend to only hold stock in about 30 companies or fewer. Compare this to your standard mutual fund, which can have company positions in the hundreds. They also tend to only focus on a few market sectors instead of a wide range.
The result is that focused funds tend to be more volatile, since they aren’t diversified enough to absorb fluctuations in one or two market sectors. But the upshot runs that, since the fund is so, you know, focused, a lot more time and attention is put into making sure each investment is as solid and potentially profitable as can be.
Or at least that's the marketing pitch from the people who manage and sell it.
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Finance: What is a Country Basket (Index...30 Views
Finance, a la shmoop. What is a country basket index fund?
All right we're picking daisies, marigolds, lilies so uh how do we [Pictures of flowers]
rephrase in Italian? Like, we want to fill a portfolio basket with just stocks [Pouring a glass of red wine]
representing the overall financial health of Italy. Is Italy healthy? While
they smoke a lot they drink a lot of wine they eat a bunch of pasta but there
always seems to be a woman from some small village who's celebrating her [Old woman at a birthday party]
117th birthday over there. Well a country basket is just an index fund of
stocks representing a country. Like we're doing Korea... South we're gonna have
in that basket dunno some Samsung, a load of Daewoo, a hunk of Hyundai and some [Company stocks being added to the basket]
nice barbecue on the side. That'd be our Korean country basket and it's a good
basket to fill if you're just bullish on a country but not really sure which
flower on which to place your bets. It's like instead of trying to decide between [The stocks in the basket turn into flowers]
roulette or poker or slots... Well you just buy stock in Las Vegas
Sands you know you bet on the entire casino, and bueno Fortuna you know good [Someone checking their cards in a casino]
luck there pal, doesn't the house always win? Yeah so why do people keep going there?...
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