Feeder Fund
Definition
What is Feeder Fund?
A fund that invests substantially all of its assets in a larger master fundA central fund that receives assets from one or more feeder funds and invests them as a single portfolio..
Example in practice
How This Looks in Practice
A local feeder fund gives investors access to a global portfolioThe complete collection of investments owned by an investor or managed under one mandate. managed offshore.
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Related Terms
Money Market Fund
A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.
Fund TypesEquity Fund
A fund that invests primarily in shares and seeks long-term capital growth.
Fund TypesFixed Income Fund
A fund focused on income-producing debt securities such as government and corporate bonds.
Investment MethodsLump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.