Regional Fund

Regional Fund

A regional fund represents a type of mutual fund administered by administrators that makes investments in assets from a particular region. Typically, a regional investment company owns a diverse array of businesses headquartered in and conducting business in the region that it is invested in. 

What is a regional fund? 

A particular topographical or socioeconomic region is the primary objective of a regional fund, a form of exchange-traded fund. A wide range of assets, including bonds and shares, are purchased by mutual funds, which are financial companies that aggregate the funds received from investors.  

Balanced, bond, revenue, growth, worth, and additional mutual fund subtypes are also available. A fee known as a load is imposed by certain investment vehicles whereas it is not in the case of individuals. Closed-end trusts have a set amount of units that can be sold on the stock market, whereas open-end mutual funds continuously offer fresh shares and purchase old units on request. 

A regional fund is a form of exchange-traded fund that focuses on investing in a specific geographical area or sector of the economy. In order to make investments in a diverse range of investments, mutual funds aggregate the money collected from investors. 

Understanding a regional fund 

  • Investing in assets from a specific part of the world, including the Americas, Western Europe, or the Asian continent, is the focus of regional funds, which are investment vehicles managed by such administrators. 
  • A regional mutual fund often holds an assortment of businesses that have headquarters in and run from its designated area of operation. 
  • A lot of investors choose regional funds to have varied exposure towards a certain region that they believe has better-than-average profit potential. 

Working of a regional fund 

A form of investment known as a regional fund, including all kinds of mutual funds. It is formed from a collection of money gathered from numerous individuals with the intention of buying and selling commodities including equities, premium bonds, high-yield debt instruments, secured loans, and various other resources. While most offer a wide mix of different kinds of assets, some specialise in a single one, such as equities. 

According to the fund’s aim, competent money managers distribute the money invested in the account and make an effort to generate financial gains, revenue, or occasionally both, on behalf of shareholders. 

A lot of investors choose regional funds to have broad exposure to a certain region that they believe has better-than-average return potential. These mutual funds are useful for ordinary investors because many individuals don’t have the money to spread their assets over a wide range of distinct assets in the vicinity. Neither do they possess the knowledge to choose which assets to invest in. 

Types of regional funds  

Regional funds, unlike all investment vehicles, can be both active and passive. The first type tries to outperform an area index and is managed by an investment administrator or team of managers. The latter aims to keep costs to a minimum while maintaining performance parity with a local index. 

The majority of regional funds solely finance businesses that are publicly traded. Nevertheless, just a handful of acquisitions in closely owned businesses are also made by a few actively managed funds. 

Due to the fact that certain regional funds have higher operating costs than US-only cash, managers of investments frequently demand more money for these types of funds. 

Examples of a regional fund  

A regional fund might invest in businesses based in the US Midwest or the South, for instance, or in another particular state or location. This kind of fund can additionally focus on a certain sector that is important to a particular area, like innovation or medicine. 

A regional fund’s goal is to expose traders to a particular sector of the economy that owners think is going to perform favourably. Shareholders can take advantage of a sector’s or region’s potential for expansion by purchasing a regional fund rather than conducting their own studies and picking out stocks. 

Frequently Asked Questions

A mutual fund which invests in businesses situated across the globe, not just in the nations where the shareholders live, is known as an international investment fund. International funds, which may make investments in businesses from nearly any nation in the globe, are distinct from international funds. 

In fact, the majority of regional grants fall under the category of international funds. Additionally, funds having extensive exposure to every international area or funds with focused exposures to assets in a single non-US country fall under the global category. 

Regional aid given for a first investment or any initial expenditure in support of a new business venture is referred to as a regional investment. 

Recurring Deposits, or RDs, have no risk attached to them, however, mutual funds do because their ability to perform is contingent on the market’s behaviour. Therefore, the investor’s risk tolerance is the only factor that influences their selection of financial tools. 

Both investing options offer favourable returns, however, the earnings on recurring deposits are fixed at the financial institution’s set interest rate. The earnings from investment vehicles are erratic since they rely on the particular fund and investing programme chosen. 

Regional funds provide various benefits, including sophisticated portfolio administration, income reinvesting, risk mitigation, practicality, and reasonable pricing.  

Additional benefits of money invested include: 

  • Adaptability 
  • Lower-cost diversification 
  • The money being invested is liquid. 
  • It is overseen by experts. 
  • Investments are governed. 
  • They exhibit transparency. 
  • Transactions are not taxed. 
  • Unable to Select Underlying Funds: Each fund of funds has a certain asset allocation method. The investments will have access to all its securities underneath once the fund administrator has allocated the assets to a particular type of fund.  
  • Increased Management Fees: Entry and exit loads must be paid by the investor when buying and redeeming mutual fund units. 
  • Asset Duplication: A group of funds may have a dependency on identical equities or debt assets across many mutual funds since they invest in different mutual funds. Diversity will be hampered and investment repetition will result. 
  • Participating in too many mutual funds which currently possess a diverse portfolio dispersed among businesses with a range of market capitalisations and industries can result in excessive diversification. 

    Read the Latest Market Journal

    All-in-One Guide to Investing in China via ETFs

    Published on Feb 27, 2024 53 

    Start trading on POEMS! Open a free account here! Why China? In the vast landscape...

    Navigating the Post-Inflation Landscape in 2024: Top 10 US Markets Key Events to Look out for

    Published on Feb 23, 2024 96 

    Start trading on POEMS! Open a free account here! In 2023, the United States experienced...

    From Boom to Bust: Lessons from the Barings Bank Collapse

    Published on Feb 23, 2024 29 

    Barings Bank was one of the oldest merchant banks in England with a long history...

    Decoding FX CFD 2.0

    Published on Feb 20, 2024 63 

    This article is aimed at availing information and knowledge essential to intermediate forex traders. It...

    Weekly Updates 19/2/24 – 23/2/24

    Published on Feb 19, 2024 87 

    This weekly update is designed to help you stay informed and relate economic and company...

    Unlock Prosperity with 5 Sure-Fire Financial Instruments!

    Published on Feb 14, 2024 195 

    In Singapore, the concept of guaranteed returns may evoke the spirit of prosperity, reminiscent perhaps...

    Weekly Updates 12/2/24 –16/2/24

    Published on Feb 13, 2024 70 

    This weekly update is designed to help you stay informed and relate economic and company...

    Decoding FX CFD

    Published on Feb 7, 2024 98 

    The foreign exchange market commonly known as the forex or FX market, is a cornerstone...

    Contact us to Open an Account

    Need Assistance? Share your Details and we’ll get back to you


    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  


    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066