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. Global Fund

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

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

    An investment vehicle that is made up of a pool of funds collected ...
  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 ...
RELATED FAQS
  1. I live in the U.S. How can I trade stocks in China and India?

    Foreign markets have always been an object of envy to domestic investors because the indexes in some foreign countries have ... Read Full Answer >>
  2. What metrics should I use to evaluate the risk return tradeoff for a mutual fund?

    One of the principles of investing is the risk-return tradeoff, defined as the correlation between the level of risk and ... Read Full Answer >>
  3. What does a positive capital account balance mean?

    A positive capital account balance indicates that more money is flowing into, rather than out of, a country. A country's ... Read Full Answer >>
  4. What does a negative balance in the capital account mean?

    A negative capital account balance indicates a predominant money flow outbound from a country to other countries. The implication ... Read Full Answer >>
  5. How does a capital account illustrate the strength of investment markets for a country?

    A nation's capital account can be a major indicator of how much interest the nation generates among foreign investors. A ... Read Full Answer >>
  6. What kinds of acts pertaining to interests in collective investment schemes are excluded ...

    The two main kinds of acts excluded from regulation as "financial instruments business," which pertain to interests in collective ... Read Full Answer >>
Related Articles
  1. Insurance

    Investing Beyond Your Borders

    Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks.
  2. Investing Basics

    Broadening Your Portfolio's Borders

    Find out what type of international fund might suit your needs in gaining exposure to foreign markets.
  3. Mutual Funds & ETFs

    Go International With Foreign Index Funds

    As global trade continues to expand and the world's economies grow, spice up your portfolio with these exciting opportunities.
  4. Mutual Funds & ETFs

    Finding Fortune In Foreign-Stock ETFs

    Think beyond your borders to reduce the impact of local market downturns.
  5. Mutual Funds & ETFs

    Getting Into International Investing

    Diversifying can mean not only investing in various asset classes but also venturing beyond domestic exchanges.
  6. Economics

    Overseas Investing No Protection Against Downturn

    The U.S. economy affects many other countries. Find out what this can mean for overseas investments.
  7. Mutual Funds & ETFs

    Top Mortgage-Backed Securities ETFs

    Investing in mortgage-backed securities has many advantages, but studying their history may make you wary.
  8. Stock Analysis

    Are These Your Best ETF, ETN Bets for 2015?

    These 10 ETFs and ETNs have been on fire, but will investors who don't proceed with caution get burned?
  9. Investing

    Best ETFs to Trade the Tokyo Stock Exchange

    Japanese stocks are soaring thanks to incredibly aggressive monetary policy. Should you go for the ride?
  10. Mutual Funds & ETFs

    Should You Bet on These 5 Inverse Oil ETFs?

    While these oil inverse ETFs can make a lot of fast money, investors need to proceed with caution.

You May Also Like

Hot Definitions
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  2. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  3. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  4. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  5. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
Trading Center