Dual Purpose Fund

DEFINITION of 'Dual Purpose Fund'

A fund created by a closed-ended investment company that offers two classes of stock. Each class offers entitlements to either income or capital appreciation.

BREAKING DOWN 'Dual Purpose Fund'

The two types of stock offered by a dual purpose fund are capital and income. The fund's two kinds of potential cash flows allow individual investors to choose classes that are more in line with their investment objectives.