Fund
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 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
Articles Of Interest
-
Will A New Fund Manager Cost You?
Learn how a change in leadership could mean more taxes for you. -
5 Ways To Measure Mutual Fund Risk
These statistical measurements highlight how to mitigate risk and increase rewards. -
Building An Emergency Fund
Do you have enough savings to cover the costs of unforeseen crises? We show you how to plan ahead. -
Massive Hedge Fund Failures
Flying high one day but not the next - see the stories behind some spectacular meltdowns. -
Introduction To Exchange-Traded Funds
Get into ETFs and enjoy the benefits of a mutual fund with the flexibility of a stock. -
An Introduction To The International Monetary Fund (IMF)
Chances are you've heard of the IMF. But what does it do, and why is it so controversial? -
A Brief History Of The Hedge Fund
Find out how this U.S.-born investment innovation became a $1-trillion industry that's both praised and vilified by the media. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Women: Invest In Your Financial Literacy
Learning about money may seem intimidating, but it's not as hard as it looks. -
4 Behavioral Biases And How To Avoid Them
Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio.
Free Annual Reports