Business, Legal & Accounting Glossary
An international fund is a mutual fund that invests in stocks and/or bonds of foreign companies. Some invest in only one country or region of the world, while others are not limited. Investors choose an international fund largely because of the potential for the growth of foreign markets. Growth in areas such as Latin America and the Far East can make an international fund perform very well. Because of political and economic instability, an international fund can be volatile; for example, it can have a high currency risk. Thus, international fund investors often study a region thoroughly before they invest in it. Other funds, however, can be quite stable. An international fund can offer investors a fairly high degree of diversification. International fund investors often have high-risk tolerance.
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This glossary post was last updated: 9th February, 2020 | 1 Views.