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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

According to one estimate, U.S. sanctions since 2017 have caused the deaths of at least 40,000 by restricting access to

needed for food, medicine, and other essential imports.

, Trumps Venezuela Policy Is Causing Turmoil in the Caribbean, 9 Aug. 2019

Liverpool are reported to have rejected the opportunity to re-sign Philippe Coutinho for 100m, preferring to direct

into contract extensions rather than new arrivals this year.

, Liverpool Declined Chance to Re-Sign Philippe Coutinho as Jurgen Klopp Backs Transfer Strategy, 9 Aug. 2019

And earlier this year, students at Georgetown University voted to create a

to help descendants of 272 enslaved people once owned by the school.

, Reparations for slavery emerge as issue among Democrats running for president, 8 Aug. 2019

An anonymous donor has pledged $150,000 to a Hall of Fame

-raising campaign to add Crum to the Naismith Coaches Circle, which will include 36 honorees with the addition of six new benches on Sept. 6.

, Denny Crum is headed back to the Hall of Fame, and the bench, but not how youd expect, 8 Aug. 2019

State officials recently established a $400,000 emergency loan

to assist businesses directly impacted by the July 22 fire in downtown Natick.

, Emergency loans will assist Natick businesses impacted by fire, 7 Aug. 2019

Unlike other western states, California does not have a

to reimburse farmers and ranchers for sheep or calves that are killed by wolves.

, Video: Three new wolf pups born in Northern California, 6 Aug. 2019

Council was told during hearings that a sports facilities

will be needed during upcoming negotiations with the Cleveland Indians to renew the teams lease on Progressive Field.

, Cuyahoga County Council increases bed tax to 6.5 percent, 6 Aug. 2019

Also in return, the city would give Serenity $3.8 million of a

that the city has saved up for the perpetual care of the cemetery.

, Our whole history of the city is buried here: Glendale may sell historic city cemetery, 27 July 2019

Pritzker and other state and local leaders say the latest gambling expansion will help

borrowing for a $45 billion statewide building campaign, called Rebuild Illinois.

, From Truck Stops to Elections, a River of Gambling Money Is Flooding Waukegan, 8 Aug. 2019

the documentary and also went toward the Anton Yelchin Foundation, which assists young people in the arts who face career challenges due to debilitating disease or disability.

, Jewish actor Anton Yelchin remembered in documentary, 7 Aug. 2019

North Koreas nuclear weapons and ballistic missile development.

, North Korean cryptocurrency heists net estimated $2 billion: UN report, 6 Aug. 2019

Another guest is Pat Geraghty, CEO of Florida Blue, which provided seed money to help

, Opioid crisis in Central Florida: Andrae Bailey talks to WFTV, 30 July 2019

The San Francisco Giants have been busy adding a number of huge sponsorship deals, including bumper agreements with Oracle and Fanatics which will help

, The 50 Most Valuable Sports Teams in the World, 24 July 2019

The French Development Agency, the development arm of the French government, will lend 20 million euros (or $22.5 Million) to the West African country to help

the new museum in the southern city of Abomey, a UNESCO World Heritage Site.

, Benins new museum for artifacts looted by France is being built using a French loan, 23 July 2019

The federal governments Title X programme helps

family-planning clinics, such as Planned Parenthood, that provide health services to poorer and uninsured women.

, Abortion laws get more attention in the culture wars, 20 July 2019

The nonprofit National Geographic Society, working to conserve Earths wild places, helped

, A storyteller chronicles the mass migrations that define our age, 17 July 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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