释义 |
world fund Global FundA mutual fund or other investment company that invests in securities that are traded in various countries. This is done to reduce risk, often political risk. For example, if one country's government announces a larger than normal budget deficit, or the central bank raises interest rates, this may affect security prices in one country, but not necessarily in other countries that did not take equivalent steps. Likewise, if a whole industry fails in one country, but thrives in another, investing in the same industry in both countries hedges one's risk. Some analysts argue that country diversification is less effective in an era of globalization, but other analysts dispute that. A global fund is also called a world fund. See also: Country diversification.world fund See global fund.World fund.US-based mutual funds that invest in securities from a number of countries, including the United States, are known as world funds or global funds. Unlike international funds that buy only in overseas markets, world funds may keep as much as 75% of their investment portfolio in US stocks or bonds. Because world fund managers can choose from many markets, they are often able to invest in those companies providing the strongest performance in any given period. |