Definition
The term global fund refers to a portfolio of stocks and fixed income securities issued by companies and governments around the world. The objective of a global fund is to provide investors with a hedge against inflation, and take advantage of geographies offering faster growth than found domestically.
Explanation
Global funds attempt to provide investors with the opportunity to realize above average returns relative to funds offering only domestic securities. The term global refers to the source of the fund's securities; it does not describe the asset allocation of the fund. That is to say, a global fund can consist of equities, which provide capital appreciation, or a fund might include a mix of equities and fixed income securities.
There is an important distinction between global funds and international funds. A global fund will contain securities from around the world, including the investor's country. An international fund will contain securities from around the world, and exclude the investor's country.
Related Terms
- The term value fund refers to a portfolio of stocks that are deemed to be undervalued by the market. The objective of a value fund includes not only providing investors with capital appreciation, but also a steady stream of dividends.
Moneyzine EditorNovember 6th, 2024 
The term emerging markets fund refers to a portfolio of securities originating from one or more developing countries. The objective of an emerging markets fund is to provide investors with higher than average returns relative to those available in what are considered developed or industrialized countries.Moneyzine EditorNovember 6th, 2024
The term income fund refers to a portfolio of securities that are expected to provide investors with a reliable source of monthly or quarterly income. These funds may consist of bonds, money market funds, as well as equities that pay relatively high dividends.Moneyzine EditorNovember 6th, 2024
The term balanced fund refers to a portfolio of stocks and fixed income securities that do not change their asset mix over time. The objective of a balanced fund is to provide investors with both capital appreciation as well as income.Moneyzine EditorNovember 6th, 2024- The term sector fund refers to a portfolio of securities issued by companies that operate in a specific industry or segment of the economy. The objective of these funds is to provide the investor with the opportunity to diversify within the sector.Moneyzine EditorNovember 6th, 2024
