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Global Fund |
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Global fund A mutual fund that can invest anywhere in the world, including the U.S. Global Fund A mutual fund or other investment company that invests in securities that are traded in various countries. This is done to reduce risk, often political risk. For example, if one country's government announces a larger than normal budget deficit, or the central bank raises interest rates, this may affect security prices in one country, but not necessarily in other countries that did not take equivalent steps. Likewise, if a whole industry fails in one country, but thrives in another, investing in the same industry in both countries hedges one's risk. Some analysts argue that country diversification is less effective in an era of globalization, but other analysts dispute that. A global fund is also called a world fund. See also: Country diversification.
Global fund. Global, or world, mutual funds invest in US securities as well as those of other countries. In that way, they differ from international funds, which invest only in non-US markets. Although global funds may keep as much as 75% of their assets invested in the United States, fund managers are able to take advantage of opportunities they see in various overseas markets. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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