Focused Fund

Focused Fund - A focused fund is a specific mutual fund that holds a bigger position in a small, limited number of stocks. In the majority of cases, mutual funds generally hold about one hundred to two hundred positions, yet a focused fund normally will only hold around ten to thirty positions in a stock portfolio. These focused funds represent quality over quantity, and therefore the investor would rather hold just a few limited stocks that the investor has the most confidence in, as opposed to diversifying using a large number of stock holdings. The theory here is that this should allow the investor to more readily research and follow how their stock holdings are doing, although by doing this the investor loses the benefits of diversification and this appears to be more volatile than other mutual fund investments. Front-End Load - A front-end load is a fee that is paid when the investor buys an investment like an insurance policy, annuity, limited partnership, or mutual fund. The fee is added onto the first payment, which is made by the investor, which makes the initial payment higher than the remaining payments, at a later date. The reason for this fee is to cover transaction costs, administrative expenses, and sometimes just to discourage investors from turning these assets over. This is the exact opposite of back-end loading, when the larger fee is the last in a long line of lower payments, making it the highest payment.