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.

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  1. Income Share

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

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  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 ...
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  2. How do waivers, reimbursements and recoupments affect a fund's expense ratio?

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  3. What are some popular mutual funds that give exposure to the drugs sector?

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  4. What can cause the rate of return to be negative?

    Several factors can cause an investment to have a negative rate of return. Poor performance of a company or companies, turmoil ... Read Full Answer >>
  5. What information should I focus on in my mutual fund's prospectus?

    The U.S. Securities and Exchange Commission (SEC) requires investment companies to provide potential and current investors ... Read Full Answer >>
  6. How can I get a free mutual fund prospectus?

    Mutual funds are sold via prospectus, as mandated by the Securities Act of 1933. The prospectus document outlines many features ... Read Full Answer >>
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