Dual Purpose Fund

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Income Share

    A class of shares offered by a dual purpose fund that has little ...
  2. Capital Share

    The class of shares offered by a dual-purpose fund that has opportunity ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  4. Class Of Shares

    1. Types of listed company stock that are differentiated by the ...
  5. Closed-End Fund

    A closed-end fund is a publicly traded investment company that ...
  6. Dividend

    A distribution of a portion of a company's earnings, decided ...
RELATED FAQS
  1. Why would a company have multiple share classes, and what are super voting shares?

    Firstly, do not confuse different classes of common stock with preferred stock. Preferred shares are an entirely different ... Read Full Answer >>
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