international fund

International Fund

A mutual fund that can invest in companies located anywhere outside of your own country.

Notes:

Many people confuse an international fund with a global fund. The difference is that a global fund includes the entire world, and an international fund includes the entire world excluding your home country.

See also: Global Fund, Mutual Fund

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International fund

A mutual fund that can invest only outside the United States.

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international fund

A mutual fund that invests in the equity securities of companies located outside the country in which the fund is located. Compare global fund.

What is the best method of investing in foreign securities?

Investing directly in international markets can be very expensive, as transaction fees are generally higher than in the United States. Additionally, smaller foreign markets often charge a higher premium when trading stocks. Other considerations are lack of liquidity and information in some foreign markets, different market operations, and withholding taxes. It is therefore recommendable that the novice investor invests in either global or international mutual funds. Although fund companies also pay transaction and exchange fees, they get better rates because of larger transaction sizes. Finally, international fund managers have the expertise it takes to maneuver through foreign economic, political, and currency trends. Also, fund managers have the ability to hedge against currency risks, thereby "insuring" part of your investment.

Thomas M. Tarnowski, Senior Business Analyst, Global Investment Banking Division, Citigroup, Inc.Salomon Smith Barney, New York, NY, and London, UK