Country Fund


DEFINITION of 'Country Fund'

An international mutual fund with a portfolio that consists entirely of securities, generally stocks, of companies located exclusively in a given country.

BREAKING DOWN 'Country Fund'

Investors should be aware that country funds often show up in performance tables with some spectacular results and, because of this phenomenon, will attract a lot of investor attention.

However, along with this type of performance also comes a high level of risk and price volatility, especially in developing countries, which are usually categorized as emerging markets. In this instance, a fund's portfolio may be concentrated in a small number of issues with very low market liquidity.

Even in developed markets like Europe, putting investment funds in a single-country fund means that you are subjecting your risk-return expectations to a relatively narrow market environment.

  1. Single-Country Fund

    A mutual fund that restricts its investment to the assets of ...
  2. World Fund

    A mutual fund that invests in securities from several different ...
  3. International Fund

    A mutual fund that can invest in companies located anywhere outside ...
  4. Emerging Market Fund

    A mutual fund or exchange-traded fund that invests the majority ...
  5. Emerging Market Economy

    A nation's economy that is progressing toward becoming advanced, ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
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