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Country Fund

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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 Says

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.

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