What is a global or international fund?

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Multiple Choice

What is a global or international fund?

Global or international funds aim to invest outside Canada to broaden geographic exposure and seek growth opportunities in other economies. They hold assets from multiple countries or regions, which helps diversify away from the Canadian market and can capture growth in areas not available at home. This diversification can reduce domestic concentration risk and expose investors to different currencies, sectors, and market cycles. The other descriptions don’t fit because: - A fund focused on the Canadian technology sector stays within one country and targeted sector. - A fund that mirrors a domestic index tracks the home market specifically, not global diversification. - A fund investing only inside Canada is purely domestic.

Global or international funds aim to invest outside Canada to broaden geographic exposure and seek growth opportunities in other economies. They hold assets from multiple countries or regions, which helps diversify away from the Canadian market and can capture growth in areas not available at home. This diversification can reduce domestic concentration risk and expose investors to different currencies, sectors, and market cycles.

The other descriptions don’t fit because:

  • A fund focused on the Canadian technology sector stays within one country and targeted sector.

  • A fund that mirrors a domestic index tracks the home market specifically, not global diversification.

  • A fund investing only inside Canada is purely domestic.

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