Foreign Fund

AAA

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 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 TERMS
  1. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that ...
  3. Global Fund

    A type of mutual fund, closed-end fund or exchange-traded fund ...
  4. International Fund

    A mutual fund that can invest in companies located anywhere outside ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Foreign remittance

Related Articles
  1. Investing Beyond Your Borders
    Insurance

    Investing Beyond Your Borders

  2. Broadening Your Portfolio's Borders
    Investing Basics

    Broadening Your Portfolio's Borders

  3. Go International With Foreign Index ...
    Mutual Funds & ETFs

    Go International With Foreign Index ...

  4. Finding Fortune In Foreign-Stock ETFs
    Mutual Funds & ETFs

    Finding Fortune In Foreign-Stock ETFs

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center