facebookWhat is a feeder fund? What is the difference between buying feeder fund and invest direct into similar Ireland domiciled S&P, besides the currency risk? - Seedly

Anonymous

10 May 2020

General Investing

What is a feeder fund? What is the difference between buying feeder fund and invest direct into similar Ireland domiciled S&P, besides the currency risk?

Think I heard Endowus is offering S&P500 via Lion Global in SGD which is a feeder fund? What’s the difference between buying feeder fund and invest direct into similar Ireland domiciled S&P, besides the currency risk?

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A feeder fund is one of many smaller investment funds that pool investor money, which is then aggregated under a single centralized master fund.

Consolidation of feeder funds into a master fund allows for reductions of operation and trading costs, and a larger portfolio has the added benefit of economies of scale.

The feeder funds that invest capital in a master fund operate as separate legal entities from the master fund and may be invested in more than one master fund.

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