Economics Mutual Funds Questions Long
The difference between a global fund and an international fund lies in the scope of their investment portfolios and the geographical regions they cover.
A global fund, also known as a world fund, is a type of mutual fund that invests in securities from companies located anywhere in the world, including the investor's home country. These funds have a broader investment mandate and can invest in companies from various countries and regions, without any specific limitations. Global funds aim to provide investors with exposure to a diversified portfolio of stocks, bonds, and other assets from different countries, allowing them to benefit from global economic growth and diversification.
On the other hand, an international fund focuses specifically on investing in securities from companies located outside the investor's home country. These funds have a narrower investment mandate and typically exclude investments from the investor's domestic market. International funds aim to provide investors with exposure to specific regions or countries outside their home market, allowing them to diversify their portfolios and potentially benefit from the growth of specific international markets.
In summary, the main difference between a global fund and an international fund is the breadth of their investment scope. Global funds have a wider investment mandate and can invest in securities from any country, including the investor's home country, while international funds focus solely on investing in securities from countries outside the investor's home market. Both types of funds offer investors the opportunity to diversify their portfolios and gain exposure to international markets, but the specific investment strategies and geographical focus may vary.