Foreign Fund

Filed Under »
Dictionary Says

Definition of 'Foreign Fund'

A mutual fund, closed-end fund or exchange-traded fund that invests in companies located outside of the investor's country of residence. 

Also known as an "international fund."
Investopedia Says

Investopedia explains 'Foreign Fund'

Foreign funds offer individual investors access to international markets. Investing abroad poses risks, but can also help investors diversify their portfolios.

It is important to recognize the difference between global funds and foreign funds. Global funds can invest in securities from any country, including the investor's home country.

Related Definitions

  • Global Fund

    A type of mutual fund, closed-end fund or exchange-traded fund that can invest in companies located anywhere in the world, including the investor's own country. These funds provide more ...
    Read More »
  • International Fund

    A mutual fund that can invest in companies located anywhere outside of its investors' country of residence. Also referred to as a "foreign fund".
    Read More »
  • Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they ...
    Read More »
    • Mutual Fund

      An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and ...
      Read More »
    • Closed-End Fund

      A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded ...
      Read More »

Articles Of Interest

Partner Links