Investment
Feeder Fund
Also known as: International Feeder Fund, Overseas Fund
Mutual fund that invests in units of another mutual fund (master fund) to provide exposure to foreign markets.
Detailed Explanation
Feeder funds are domestic mutual funds that invest primarily in units of overseas mutual funds (master funds) or ETFs. They provide Indian investors easy access to foreign markets without the complexity of direct overseas investing. Popular feeder funds include those tracking US markets (S&P 500, NASDAQ) or global indices. They're subject to Indian mutual fund regulations and taxation, making them more accessible than direct foreign investment.