Investment Objectives & Styles
Typically, a fund's objective is to achieve a specific type of return, which is sometimes based on a specific timeframe.
Fund managers adopt an investment style, or approach to choosing investments, because they believe it will help them achieve their investment objectives.
Diversified and non-diversified mutual funds adhere to different standards regarding their asset allocation. The funds' objectives may be different as well.
Though mutual funds offer diversification, they are not immune to market movements and changes in the economy. As with any investment, a mutual fund's value can suffer losses if the economy, market or a market sector experiences a downturn.