Question

Medal and Fan :)
Q: What is the appeal and risk of a focused funds?

Appeal:

Risk:

Answer 1

Ive been staring at this frickin question for 30 mins and looking u info, camt find it anywhere

Answer 2

Lol well from what I'm reading...Focused funds are basically when you dont just blindly buy stock of a bunch of companies, it is a much more handpicked and researched type of stockbuying

So appeal would be better researched and more chance to make a profit whereas the cons are you lose the diversity factor, the chance to buy stock from a bunch of different companies

Answer 3

This is just my interpretation from what I'm reading though, anyone else can hop in and add/remove anything if they wish :)

Answer 4

Thank you jon :)

Answer 5

Jo*h*n but you're welcome :)

Answer 6

Sorry, typed too fast, and so this is the risk? (risk: ons are you lose the diversity factor, the chance to buy stock from a bunch of different companies)?

Answer 7

Absolutely, there is something called under-diversified fund and this is exactly what it means :)

Answer 8

Makes sense now :)