Foreign Fund

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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."

BREAKING DOWN '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.

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RELATED FAQS
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    A mutual fund can – and should – outperform a savings account. In most cases, it should not even be a close race. Savings ... Read Full Answer >>
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    Mutual funds can invest in private companies, which may come as a surprise to many investors. It is rare for a fund to have ... Read Full Answer >>
  4. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  5. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
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