Master Fund

DEFINITION of 'Master Fund'

In general, an investment vehicle that enables individual investors to invest money into one or more underlying investments that are operated by professional managers.

BREAKING DOWN 'Master Fund'

Master funds can generally be categorized into three types: discretionary funds, fund of funds, or feeder funds. With this last type, shares would be sold to the public only by the feeder fund, but invested through the corresponding master fund.

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