mutual fund or unit investment trust that invests in a wide variety of securities, and is allowed to have no more than 5% of its assets in a single company, or to have 10% of a company's voting shares. see also investment company.
A requirement under the Investment Company Act of 1940. In order to advertise itself as diversified, an investment company must invest a minimum of 75% of its assets, so that no more than 5% of its assets are invested in any one issuer's securities, and it owns no more than 10% of the voting shares of any one company.
Fund that has not invested more than five percent of its total assets in any single company, and does not hold more than 10 percent of the outstanding voting securities of any company, as stipulated in the Investment Company Act.
Open- or closed-end fund or unit trust that under the Investment Company Act of 1940, is managed not having more than 5% of its assets in the securities of any one issuer or commodity and may not own more than 10% of the voting shares of any one issuer, with 75% of the fund's total assets cash, cash equivalents or securities.
Under the Investment Company Act of '40, an Investment Company with respect to 75% of its portfolio, has no more than 5% of its portfolio invested in any one security and owns no more than 10% of the voting shares of any one company.
Term used for either closed or open-ended mutual funds or unit trusts that invest in many different kinds of securities and companies. Under the Investment Company Act of 1940, an investment company, with respect to 75% of its portfolio, may not have more than 5% of its assets invested in the securities of any one issuer and may not own more than 10% of the voting shares of any one issuer. See: Diversification