Master Fund(redirected from Master Funds)
A mutual fund or other fund that allows a shareholder to have access to other investment vehicles. For example, a master fund may be a fund of funds, which is a mutual fund that invests in other mutual funds. Likewise, it may be a mutual fund in which a feeder fund invests. In the latter case, shares of the feeder fund represent shares in the master fund, which, in turn, represents shares in the underlying securities. Master funds and similar structures are relatively common when the one fund or the other contains tax disadvantages for shareholders that the other fund remedies.