Fund

Dictionary Says

Definition of 'Fund'

A source of money that will be allocated to a specific purpose. A fund can be established for any purpose whatsoever, whether it is a city government setting aside money to build a new civic center, a college setting aside money to award a scholarship, or an insurance company setting aside money to pay its customers' claims.

Investopedia Says

Investopedia explains 'Fund'

Individuals, businesses and governments all use funds to set aside money. Individuals might establish an emergency fund or rainy-day fund to pay for unforeseen expenses, or a trust fund to set aside money for a specific person.

 

Individual and institutional investors can also place money in different types of funds with the goal of earning money. Examples include mutual funds, which gather money from numerous investors and invest it in a diversified portfolio of assets, and hedge funds, which invest the assets of high-net-worth individuals in a way that is designed to earn above-market returns. Governments use funds, such as special revenue funds, to pay for specific public expenses.

Related Definitions

Search results for

'Fund'

  • What was the first mutual fund?

    http://www.investopedia.com/ask/answers/09/what-was-first-mutual-fund.asp
    Although it is uncertain, many trace the creation of the first mutual fund back
    to Dutch merchant Adriaan Van Ketwich. ... What was the first mutual fund? ...
  • 7 Hedge Fund Manager Startup Tips

    http://www.investopedia.com/articles/financial-careers/08/become-a-hedge-fund-manager.asp
    Starting a hedge fund is the new American dream. Find out how you can pull
    it off. ... 7 Hedge Fund Manager Startup Tips. March 27 2012 ...
  • Building An Emergency Fund

    http://www.investopedia.com/video/play/building-an-emergency-fund
    An emergency fund can mean the difference between tough times and a total financial
    disaster. Find out how an emergency fund works and why you need one now. ...
  • Digging Deeper Into Mutual Fund Names

    http://www.investopedia.com/articles/mutualfund/08/mutual-fund-names.asp
    Digging Deeper Into Mutual Fund Names. May 01 2011 ... what's the difference?
    Not much, at least by the implication of the fund name. ...
  • How To Invest Like A Hedge Fund

    http://www.investopedia.com/articles/mutualfund/08/hedge-fund-invest.asp
    How To Invest Like A Hedge Fund. ... SEE: A Brief History Of The Hedge Fund.) Cash
    Flow Is King Hedge funds can come in all shapes and sizes. ...
  • Seasick? Try A Low Volatility Fund

    http://stocks.investopedia.com/stock-analysis/2011/Seasick-Try-A-Low-Volatility-Fund-XLP-ED-PG-SPLV-LVOL-SLVY-EFAV-HILO1102.aspx
    ... Article; Comments (0). Seasick? Try A Low Volatility Fund.
    Posted: Nov 02, 2011 10:29 AM by Aaron Levitt. ...
  • Money Market Mayhem: The Reserve Fund Meltdown

    http://www.investopedia.com/articles/economics/09/money-market-reserve-fund-meltdown.asp
    Money Market Mayhem: The Reserve Fund Meltdown. ... The fund had a $785 million
    allocation to short-term loans issued by Lehman Brothers. ...
  • Turnover Ratios Weak Indicator Of Fund Quality

    http://www.investopedia.com/articles/mutualfund/09/mutual-fund-turnover-rate.asp
    Turnover Ratios Weak Indicator Of Fund Quality. ... If a fund has 100% turnover,
    the fund replaces all of its holdings over a 12-month period. ...
  • What is an unregistered mutual fund?

    http://www.investopedia.com/ask/answers/09/unregistered-mutual-fund.asp
    An unregistered mutual fund is a general name given to investment companies that
    are not formally registered with the Securities and Exchange. ...
  • Analyzing Mutual Fund Risk

    http://www.investopedia.com/articles/mutualfund/09/analyzing-mutual-fund-risk.asp
    Find out whether a fund's performance is a result of the manager's abilities,
    or just a fluke. ... Analyzing Mutual Fund Risk. January ...

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