How many stocks might an equity closed-end fund own?
The number can range from a few stocks up to hundreds, depending on the quantity of assets and the diversification or concentration of the portfolio holdings to. Funds which hold 30 or fewer stocks are sometimes called “focus funds,” because they seek to generate superior performance from their very best stock selections. While such a strategy can be rewarding for investors at times, it also may involve greater risk than investing in a portfolio which is diversified among one hundreds or more stocks.
