Institutional Fund


DEFINITION of 'Institutional Fund'

A fund that targets high value investors with low management fees, but very high minimum investing requirements. Institutional funds refers to funds that aim to manage money for large institutional investors, such as pension or endowment funds. These funds will typically offer much lower MERs than retail funds, but also mandate a minimum investment much greater than most other funds, some hedge and private equity funds withstanding.

BREAKING DOWN 'Institutional Fund'

These funds must indicate within their prospectuses or name that they're institutional and typically solicit managers of retirement plans, institutional investors and large endowment trusts. These funds can take almost any form, be it a mutual fund, private equity fund, hedge fund or venture capital fund. The defining trait of institutional funds are the clientele they cater their services to.

  1. Endowment

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  2. Hedge Fund

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  3. Private Equity

    Private Equity is equity capital that is not quoted on a public ...
  4. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  5. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  6. Mutual Fund

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