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.

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RELATED FAQS
  1. Which class (class A, B, C) shares should I purchase if my time horizon is long term, ...

  2. How do I purchase shares of a closed-end investment?

    Understand the difference between open-end and closed-end funds, and learn how an investor can purchase shares in a closed-end ... Read Answer >>
  3. What risks are associated with a closed end investment?

    Explore the characteristics of closed-end funds as compared to open-end funds, and understand the risks associated with investing ... Read Answer >>
  4. What is the difference between Class A shares and other common shares of company's ...

    Discover how a company can break down its common stock into multiple classes and how these classes differ from one another ... Read Answer >>
  5. 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 Answer >>
  6. How are a mutual fund's C shares different from A and B shares?

    Learn how a class C share differs from a class A or B share in relation to a mutual fund. Read Answer >>
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