Economics Mutual Funds Questions Medium
The main difference between a global fund and an international fund lies in their investment scope and geographical coverage.
A global fund, also known as a world fund, has a broader investment mandate and can invest in securities from any country around the world, including the domestic market. It has the flexibility to invest in both domestic and foreign securities, without any specific limitations on geographical boundaries. This means that a global fund can invest in companies from any country, including the fund's home country.
On the other hand, an international fund focuses specifically on investing in securities from countries outside of the fund's home country. It excludes investments in domestic securities and concentrates solely on foreign markets. International funds typically have a narrower investment scope compared to global funds, as they are limited to investing in securities from specific regions or countries.
In summary, the key difference between a global fund and an international fund is that a global fund has a broader investment mandate and can invest in both domestic and foreign securities, while an international fund focuses solely on investing in securities from countries outside of the fund's home country.