Difference between Global Fund and International Fund:

In the English language, “Global” and “International” tend to be used interchangeably – hence the confusion takes place. In investing world global and international funds are having completely different goals and providing different kind of investment opportunities to the investors.

Global Funds:

Global funds consist of securities in all parts of the world, including the country in which you reside.

Global funds are for those investors who wish to diversify against country-specific risk without excluding their own country.

Benefits of Global Funds:

An investor may already have a lower than desired concentration of domestic investments may get the perfect portfolio.

An investor may not want to take on the high level of risk involved in making foreign investments.

International Funds:

International funds consist of securities from all countries except the investor’s home country.

International funds are for those investors who want diversification outside of the investor’s domestic investments.

Benefits of International Fund:

If an investor currently holds a portfolio consisting mainly of domestic investments, he or she may choose to diversify against country – specific risk and purchase an international fund.

A speculator may invest in an international fund because he anticipates a rise in a particular foreign market.