DEFINITION of 'Tilt Fund'

A fund developed when an institution compiles a core holding of stocks that mimic a benchmark type index such as the S&P 500 to which additional securities are added to help tilt the fund toward outperforming the market. These funds are typically used by major investors in an effort to enhance overall investment returns. The right mix/tilt of stocks provides both safety and performance.

BREAKING DOWN 'Tilt Fund'

Managers use tilt funds to obtain accelerated returns from their investments while maintaining a certain level of safety. Therefore, while tilt funds have the potential to outperform the broader market, the risk they take on to achieve superior returns is considered to be fairly low.

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