Retail Fund

AAA

DEFINITION of 'Retail Fund'

A type of fund that is registered with the Securities and Exchange Commission (SEC) and is sold to individual investors through investment dealers and in open market transactions. Retail funds are often categorized as mutual funds, and carry lower initial investments and management expense ratios than non-retail funds.

INVESTOPEDIA EXPLAINS 'Retail Fund'

Because retail funds are registered with the SEC, they are restricted in the amount of overall risk they can expose themselves to, such as option trading and short selling. These risks are considered as such due to the nature of their volatility and speculative nature.

If you compare retail funds to non-retail hedge funds, you will notice that non-retail hedge funds typically require larger initial investments and are marketed privately to high net worth clients.

RELATED TERMS
  1. Self-Regulatory Organization - ...

    A non-governmental organization that has the power to create ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  3. Hedge Fund

    An aggressively managed portfolio of investments that uses advanced ...
  4. Management Fee

    A charge levied by an investment manager for managing an investment ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
Related Articles
  1. How To Pick A Good Mutual Fund
    Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

  2. Will A New Fund Manager Cost You?
    Mutual Funds & ETFs

    Will A New Fund Manager Cost You?

  3. The Rise Of The Hedged Mutual Fund
    Retirement

    The Rise Of The Hedged Mutual Fund

  4. Hedge Funds Go Retail
    Options & Futures

    Hedge Funds Go Retail

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center