Reviewed by Sep 30, 2020| Updated on
The global fund is defined as a fund which invests in firms listed across the world, including the investor's country. It aims to identify the best securities investments possible across the globe. Global funds consider both single asset classes and multiple asset classes.
Investing in global funds offers investors a diversified portfolio. Also, investing in global funds can increase potential returns and risk, as well. Some global funds are passively managed.
The investment regions across the globe are categorised as developed markets, emerging markets, and frontier markets. Each of these categories includes countries with individual characteristics and risks.
Investing in a global fund is an excellent way of diversifying one's investment portfolio.
Investing in a global fund increases the potential return on investment.
Global funds can sometimes mitigate or increase the risk level.