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Chapter 21: Financial Statement Analysis - McGraw
Chapter 21: Financial Statement Analysis - McGraw

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... savings available for investment spending in any given country is known as the net capital inflow into that country, equal to the total inflow of foreign funds minus the total outflow of domestic funds to other countries. Like the budget balance, a net capital inflow can be negative—that is, more ca ...
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... fund] with prepayment and credit risk.” Indeed, he said DBL has triple the risk of DBLTX, although its performance has been two- to three-times that of DBLTX, giving the two roughly the same riskadjusted results. He said that DSL is approximately 10-times the size of DBL and has more credit risk and ...
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Investment fund



An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group. These advantages include an ability to: hire professional investment managers, which may potentially be able to offer better returns and more adequate risk management; benefit from economies of scale, i.e., lower transaction costs; increase the asset diversification to reduce some unsystemic risk.Terminology varies with country but investment funds are often referred to as investment pools, collective investment vehicles, collective investment schemes, managed funds, or simply funds. An investment fund may be held by the public, such as a mutual fund, exchange-traded fund, or closed-end fund, or it may be sold only in a private placement, such as a hedge fund or private equity fund. The term also includes specialized vehicles such as collective and common trust funds, which are unique bank-managed funds structured primarily to commingle assets from qualifying pension plans or trusts.Investment funds are promoted with a wide range of investment aims either targeting specific geographic regions (e.g., emerging markets or Europe) or specified industry sectors (e.g., technology). Depending on the country there is normally a bias towards the domestic market due to familiarity, and the lack of currency risk. Funds are often selected on the basis of these specified investment aims, their past investment performance, and other factors such as fees.
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