Is there a difference between a global mutual fund and an international mutual fund?
An international mutual fund invests solely in the stocks, bonds and securities of foreign companies and governments. A global fund invests in some mix of domestic and international securities. It is important to keep a mix of both US stocks and the stocks of foreign countries in a portfolio for diversification. Most managers of global funds will vary the percentage of assets that they invest in the US and abroad, depending on where they see the greatest potential for profits If you are only able to make investments in one mutual fund, investing in a global fund can give you exposure to the gains in many markets, and spread the risk of investment in one market. If you can invest in a few mutual funds, using a few domestic mutual funds and a couple international funds can give you the same exposure to different markets, but with better ability to control how much you have in US securities and overseas investments.
