What is a diversified fund?

A diversified fund invests in a range of asset classes, regions, and/or industry sectors.  Each of these assets have different characteristics eg their values may not all rise or decline at the same time.  Investing in a range reduces the potential risk that anyone sector/region/industry can have on the overall performance of the fund – spreading the risk.

Diversified funds can be built to align to specific risk profiles, for example, Conservative, Balanced or Growth.