Global fund

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Global fund

A mutual fund that can invest anywhere in the world, including the U.S.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

global fund

A mutual fund that includes at least 25% foreign securities in its portfolio. The value of the fund depends on the health of foreign economies and exchange rate movements. A global fund permits an investor to diversify internationally. Also called world fund. Compare international fund.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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References in periodicals archive ?
If the persistent talk of policy paralysis, high inflation, rating downgrades, financial scams and earnings slowdown is forcing you to defer putting money in Indian equities, it is time to consider investing abroad by buying units of global funds. These funds help you invest in equity but with less exposure to country-specific risks.
Global funds set up to improve immunisation coverage and to combat AIDS, tuberculosis and malaria have shown the need for good infrastructure.
portions of three global funds that are available domestically, the $500 million Prudential Global, the $200 million Prudential Global Genesis and the $600 million Prudential Series Global Equity.
In 1995, the return for U.S general equity mutual funds was 31.2% compared with 15.8% for global funds and 6.6% for international mutual funds, according to Morningstar, the Chicago-based firm that tracks mutual funds.

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