How many companies does a mutual fund usually invest in?

Question

How many companies does a mutual fund usually invest in?

Answer 1

There are no minimum required. You can have 10 stocks that are all in the same industry and that would be called a ...

anyone

anyone

...sector fund.

In my experience, funds might have 20-40 holdings. Some funds that get too large own the entire stock market because they can't begin to move that kind of money in and out of the market without getting whacked.

Answer 2

I believe most have a minimum of 20 stocks, and then balance it out with some bonds, and enough liquid cash to buy stocks and pay shareholders.

They all have their rules. Usually no more than 5% of the value of the fund can be in one stock, which is nice till you get a stock that grows from 4% to 8% and they have to keep selling it to maintain their 5% maximum..

Some have hundreds of stocks.

Answer 3

The Janus 20 fund tries to limit it to 20-25. Most others have many dozens if not hundreds.

Answer 4

It varies widely.  You can read their quarterly reports and find out.