Articles on: Investment Glossary

Diversified 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.

Updated on: 24/04/2023

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