Feeder fund

Feeder Fund - A feeder fund is a fund where an investor invests only through another fund, which is known as a master fund. The shares are sold to any investor through the feeder fund, but are only invested back through the master fund.

Feeder Fund
A fund that conducts virtually all of its investing through another fund (called the master fund).
Final Prospectus ...

Master Feeder Fund
A feeder fund conducts the majority of its investing through another fund which is called the master fund. So why would you want to invest in a fund that invest in another fund?

Feeder fund
Fence (finance)
Financial adviser
National Financial Educators Council
Financial planning (business)
Financial sponsor
Fixed-income relative-value investing
Fond commun de placement
Foreclosure data provider ...

Many hedge funds are structured as master-feeder funds. In such a structure, the investors will invest into a feeder fund, which will, in turn, invest all of its assets into the master fund.

See also: Stock, Vesting, Investment, Market, Investing