What is a World Fund?
A world fund, also called an international fund, is a type of mutual fund that invests its assets in companies, organizations, governments, and bonds throughout the world. A mutual fund is an investment that has thousands of like-minded investors. Having such a large number of investors allows the mutual fund to commingle the investors’ resources so that the fund can invest broadly. The mutual fund then uses the investors’ assets to purchase multiple securities that fulfill the objectives of the mutual fund. Similar to mutual funds that invest in domestic securities, a world fund can come in many different styles. These differences can be identified by the objective of the fund. Some world funds focus on investing in specific sectors of the world, such as developing nations. These are generally called developing or emerging market funds. The world fund may purchase stocks of established, expanding companies all over the world. These are typically “growth” or “growth and income” funds.
