Country Fund

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Emerging Market Fund

    A mutual fund or exchange-traded fund that invests the majority ...
  2. International Fund

    A mutual fund that can invest in companies located anywhere outside ...
  3. Emerging Market Economy

    A nation's economy that is progressing toward becoming advanced, ...
  4. Single-Country Fund

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

    A mutual fund that invests in securities from several different ...
  6. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
Related Articles
  1. Broadening Your Portfolio's Borders
    Investing Basics

    Broadening Your Portfolio's Borders

  2. Why Country Funds Are So Risky
    Investing Basics

    Why Country Funds Are So Risky

  3. Cut Your Tax Bill With Donor-Advised ...
    Taxes

    Cut Your Tax Bill With Donor-Advised ...

  4. Can High Fund Returns Be Deceiving?
    Mutual Funds & ETFs

    Can High Fund Returns Be Deceiving?

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center