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a sum of money or other resources whose principal or interest is set apart for a specific objective

money on deposit on which checks or drafts can be drawn

an available quantity of material or intangible resources

to make provision of resources for discharging the interest or principal of

to convert into a debt that is payable either at a distant date or at no definite date and that bears a fixed interest

HealthQuest Capital has raised $440 million for its third

, beating the $300 million target for its latest vehicle aimed at investing in growth-stage health-care companies.

, HealthQuest Beats Target, Raises $440 Million for Third Medical Fund, 3 Apr. 2019

raised for breast cancer research are put towards researching metastasis.

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are cheaper and higher-yielding than their peers.

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The Italian fashion brand announced a new global program and scholarship

, called Gucci Changemakers, that will promote diversity and inclusion throughout the company with a multi-step action plan.

, Gucci Announces Changemakers Program to Improve Diversity and Inclusion, 18 Mar. 2019

As commissioner, Wen successfully sued the Trump administration for cutting

, The New President Of Planned Parenthood Has Big Plans For The Future, 14 Mar. 2019

based on w hat happened to graduates of that program.

, The State of American Trade Schools, 13 Mar. 2019

In a lengthy phone interview, Iles explained that he was driven by an admiration for the profession of journalism and wanted to help develop a new business model to

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The country sold a five-year Eurobond with a yield of 4.75% and a 10-year note with a yield of 5.375%, according to a

, Uzbekistan Makes International Bond Debut Amid Emerging Market Rally, 14 Feb. 2019

Both the House and Senate voted to overturn Trumps declaration of a national emergency to use construction money to

, Lawmakers denounce plan to divert military money for wall, 26 Mar. 2019

Under the plan, New Jersey would auction off $250 million worth of tax credits to businesses over five years and use the proceeds to

the program, which is part of his proposal to overhaul economic-development efforts.

, New Jersey Governor Proposes Partnering With VC Funds, 20 Mar. 2019

by the government, libraries are not federal buildings and will be operating during normal hours.

, A Full List of Everything Thats Open on Good Friday, 6 Mar. 2019

, Will Kansas City ever be bike-friendly? The city is about to roll out a plan, 13 July 2018

not by payroll taxes but by drawing from future Social Security, effectively delaying retirement for parents who dip into their savings.

, Paid family leave: While US lags behind, more states set policies, 12 July 2018

The balloon, which is 20 feet tall, was created via a crowdfunding campaign that managed to collect over $23,000 to

, The Baby Trump Balloon Will Fly Over London on Friday. Organizers Want to Send It to His Scotland Golf Course Next., 12 July 2018

And their word is pretty much final, since Elizabeth and Charles will be jointly

, Meghan Markle and Prince Harry Asked for Independence and the Queen Said No, 17 Mar. 2019

or not fund based on w hat happened to graduates of that program.

, The State of American Trade Schools, 13 Mar. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word fund. Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors.Send us feedback.

earlierfond,borrowed (with later respelling after Latinfundus) from Frenchfondbottom, base, foundation, (in plural) sum of money, capital, resources, going back to Old Frenchfunt, fontbottom, base, cultivated ground, going back to Latinfundus more atbottomentry1

A capital bruise, a budget of news, the fund of a bottle, and more

Fundusually refers to mutual fund, which is an open-endedinvestmentcompany that pools investorsmoneyinto a fund operated by aportfolio manager. This manager then turns around and invests this large pool of shareholder money in a portfolio of various assets or combinations of assets.

Funds may include investments instocksbonds, options,futures, currencies,treasuriesandmoneymarket securities. Depending on the stated objective of the fund, each will vary in regard to content and risk.

Fundsissueand redeemshareson demand at the funds NAV, ornet asset value. Mutual fund management fees typically range between 0.5% and 2% of assets peryear, but12b-1fees, exchange fees and other administrative charges also apply.

There are several different types of funds of which you should be aware:

Closed-End Funds: Closed-end mutual funds issue a fixed number of shares to theinvestingpublic and usually trade on the major exchanges just like corporate stocks. Closed-end funds often invest in a particular sector, a specific industry or a certain country.Open-End Funds: Open-end mutual funds stand ready to issue and redeem shares on a continuousbasis. Shareholders buy the shares at net asset value (NAV) and can redeem them at the current market price.Load Funds: The term load refers to thesales chargepaid by an investor who purchases shares in a mutual fund. When the sales charge is imposed at the time of purchase, this is known as afront-end load. Conversely,back-end loadsrepresent charges that are assessed when the investor eventually sells the fund.No-Load Funds: A no-load fund is sold without a sales charge.

Additionally, a given fund may issue different classes of its shares to investors. The most common variations of share classes for load funds are front-load A shares, back-end-load B shares and level-load C shares.

Class A Shares: A mutual fundsA sharescharge a front-end load at the time of purchase. This is asalesfee that is charged as a percentage of the total investment and is used to compensate the financial representative who sells the fund. The amount of the front-end load is subtracted from the original investment. For example: If an investor places $10,000 in a mutual fund with a front-end load of 2%, then the total sales charge would be $200. The remaining $9,800 will go toward the purchase of shares in the fund. Also, A shares may impose an asset-based sales charge. Investors do not pay these charges directly. Instead, they are taken from the funds assets. The fund then uses these fees to market and distribute its shares. The 12b-1 fee, which can equal a maximum of 0.25% per year, is an example of an asset-based sales charge.Class B Shares:B Sharescharge back-end loads. When an investor purchases B shares, the sales charge is deferred until the fund is sold. This deferred load usually decreases each year. B shares typically charge a higher asset-based sales charge than Class A Shares. For example, the B shares of a fund may carry a 5% load if shares are sold within the first year. This back-end load of 5%, however, could be reduced by 1% every year until it is eliminated in the fifth year. Some B shares automatically convert to A shares after a specified period of time, which reduces the 12b-1 fees.Class C Shares:C Sharestypically do not impose a front-end load but will often charge a nominal fee if the shares are sold within one year. Class C shares often impose a high asset-based sales charge but will not convert to A shares when the load reverts to zero.

It is an important for an investor to consider mutual funds among their investment opportunities. Just as with any investment, the pros and cons must be compared.

Professional managementInvestmentdiversificationLiquidityExplicit investment goalsSimple reinvestment programs

Many funds charge hefty fees, leading to lower overall returns.Statistics show that most actively managed funds tend to underperform theirbenchmarkaverages over time.Funds cannot be bought or sold during regular trading hours, but instead are priced just once per day.

Index fundsare mutual funds that are designed to track the performance of a particular index.

When an investor purchases a share of an index fund, he or she is purchasing a share of a portfolio that contains the securities in an underlyingindex. The index fund holds the securities in the same proportion as they occur in the actual index, and when the index decreases in value, thefunds shares decrease as well, and vice versa. The only time an index buys or sells astockis when the index itself changes (either in weighting or in composition). Index funds haveticker symbolsand are traded on all major exchanges.Index funds are available for most any index. Some index funds replicate broad market indexes, and some replicate indexes that only contain securities with special characteristics, including minimum financial ratios, participation in a certain industry,  geography, or other distinctions.The performance of an index fund usually does not exactly match the actual indexs performance. This is because index funds charge management fees, which eat into returns, and because the funds weighting in particular securities may not perfectly match the weighting of the securities in the actual index. The degree to which the fund and the index returns differ is calledtracking error.

Index fundsare a popular way to participate in thestockmarket and diversify a portfolio. Index funds have several major advantages over direct ownership of theunderlying securities. Heres a brief review:

Diversification– Each index fund represents an interest in an underlying basket of securities. This allows investors togainbroad exposure to a large group of companies easily. Thisdiversificationalso makes index funds much less volatile than individual securities. Foreign index funds in particular make diversifying abroad less difficult and expensive; they also offer exposure to entire foreign markets andmarketsegments.

Low Cost– Buying and selling shares of an index fund is far less expensive than separately buying and selling a basket of underlyingshares. Also, the decision of which securities to invest in is determined by the index rather than by active management. This is why index funds usually have minimal expense ratios and are often more affordable than other diversifiedinvestmentvehicles. However, many haveminimum investmentrequirements and front- orback-end loads, making them impractical for some investors.Liquidity– Index fund shares are bought and sold on major exchanges every day, and manyfundstrade hundreds of thousands (and in some cases millions) of shares per day. Buying and selling shares of an index fund can be faster and more convenient than buying and selling the underlying shares.

Dividends– Many index funds pass through the accumulated dividends paid by their underlyingstocks. Over time, these dividends can add up to a significant sum.Choices– Some index funds track broad U.S.equitymarket indexes. Meanwhile, others track specific sectors or industry groups. Still others represent an interest in baskets of foreign stocks. And finally, others invest exclusively in the bond market.Returns– Studies have proven that over time, the average mutual fund typically fails to beat the broad indexes. With this in mind, index funds are a great way to capture broader-market returns. For adherents to the efficient market hypothesis, which states that it is impossible to outperform the broad stock market over the long haul, index funds can be a way to optimize portfolio returns.

Avulture fundis a pool of investor money that makes investments in securities from distressed issuers (usually bonds).

Lets say Company XYZ has lost 75% of its customers due to a food-poisoning scandal. The stock has lost 90% of its value, and the market does not believe the company can recover. Company XYZ still owns, however, apatenton a packaging technique that could be licensed and applied in other industries. Vulture Fund ABC knows this and buyshigh-yield bondsin Company XYZ, betting that the value of that patent might resurrect the company or at least ensure the return of capital plus interest if the patent is sold duringbankruptcy.

Vulture funds often also purchasedebtfrom lenders. So, for instance, if Bank DEF had lended $15 million to Company XYZ and Bank DEF wants to get this debt off the books, it might sell that debt to a vulture fund, similar to how credit card companies might sell customerdebtsto collection agencies. The vulture fund then negotiates with Company XYZ to secure a payout greater than the vulture funds initial investment.

Vulture funds also invest insovereign debt, which is the debt of countries governments. When countries are struggling, vulture funds might purchase this debt and then become heavily involved and influential in the governments restructuring.

Vulture funds often get a bad rap for circling dying companies in the hopes of picking off the last meat on a carcass for a quick profit. However, the analogy should sometimes be more like giving CPR. Vulture funds are often the last chance companies have to come back to life, and the funds offers to provide cash may be the last attempt these companies can make to rescuscitate themselves.

English Language Learners Definition offund(Entry 2 of 2)

See the full definition forfundin the English Language Learners Dictionary

a sum of money or other resources whose principal or interest is set aside for a specific objective

a fund established by each state to compensate clients for losses suffered due to their attorneys misappropriation of funds

an in-house trust fund established by a bank trust department to pool the assets of many small trusts for greater diversification in investing

a fund established in estate planning to provide for the payment of final expenses by an executor

a fund that is established by collective bargaining to provide health and welfare benefits to employees and that is jointly administered by representatives of labor and management

a reserve cash fund in lieu of a capital stock account set up by mutual insurance companies to cover unforeseen losses

a fund set up and accumulated by regular deposits for paying off the principal on a debt or for other specified purposes (as self-insurance)

a fund accumulated by a union through special assessments or from general funds and used to pay striking workers or for other strike-related activities

after the Taft-Hartley Act of 1947, which established it

property (as money or securities) settled or held in a trust

a fund that is similar to an index fund in tracking a stock index but that is traded on the stock market

a mutual fund that invests in the stock of growth companies

an investing group usually in the form of a limited partnership that employs speculative techniques in the hope of obtaining large capital gains

a mutual fund that invests to reflect the composition of the market as a whole by matching its investments to a stock index

an investment company that invests its shareholders money in a usually diversified group of securities of other companies

an investment company that buys up bankrupt or insolvent companies with the goal of reorganizing them so they can be profitably resold as going concerns

to make provision of resources for discharging the principal or interest of

to convert into a debt that is payable either at a distant date or at no definite date and that bears a fixed interest

Britannica English:Translation offundfor Arabic Speakers

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