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Fund for Dummies

noun

pronunciation: fənd

What does Fund really mean?

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Hey there! I see you're curious about the word "fund." Great choice! Now, let's dive into it and unravel its meaning in a way that makes total sense to you.

So, imagine you have a piggy bank sitting on your shelf. It's there to help you save up your money for something special. Well, think of a fund as a big piggy bank that lots of people contribute to. Instead of saving money for yourself, though, a fund is like a savings account that a group of people put their money into. This money is collected and managed by an organization or institution, which could be a company, a government agency, or even a group of people united by a common goal.

Now, let's take a closer look at the two main definitions of the word "fund."

Definition 1: A sum of money set aside for a specific purpose or goal.

Just like your piggy bank is for saving up money for something special, a fund is all about pooling money together for a specific reason. The purpose can vary widely, spanning from building a school in a community that needs it, providing medical assistance for those in need, or even protecting endangered animals. As long as there is a clear goal, people contribute to the fund to make it happen.

Definition 2: A collection of assets, such as stocks or bonds, held by an organization to generate income.

Now, this definition can be a bit trickier to grasp, but don't worry, we'll break it down step-by-step. Think of assets like puzzle pieces that fit together. Instead of putting the puzzle together to create a picture, though, people invest these puzzle pieces (stocks or bonds) into a fund. The fund then takes care of all the puzzle pieces, making sure they generate income, like a continuous stream of money. This income can be distributed back to the people who invested in the fund, sort of like getting "interest" when you put money in a savings account.

So, to wrap it up, a fund is like a big piggy bank where people team up and put their money or assets together to achieve a specific goal or generate income. It's all about coming together to make something happen, just like when a bunch of friends team up to build a gigantic sandcastle at the beach!


Revised and Fact checked by Daniel Clark on 2023-10-28 12:51:44

Fund In a sentece

Learn how to use Fund inside a sentece

  • When you want to buy a toy that costs $10, you can save a little bit of money each week until you have enough funds to buy it.
  • Some people donate funds to help build new schools in poor communities so that all the children can have a good education.
  • The government allocates funds to support scientific research in order to discover new medicines and treatments for diseases.
  • A group of friends decided to create a fundraising event to gather funds for a local animal shelter that takes care of stray cats and dogs.
  • Investors put their funds into a company to help it grow and develop new products.

Fund Synonyms

Words that can be interchanged for the original word in the same context.

investment company investment company investment firm investment firm investment trust investment trust monetary fund monetary fund stock stock store store

Fund Hypernyms

Words that are more generic than the original word.

accumulate accumulate accumulate accumulate accumulation accumulation amass amass amass amass collect collect collect collect commit commit compile compile compile compile finance finance furnish furnish hoard hoard hoard hoard invest invest money money nondepository financial institution nondepository financial institution pile up pile up pile up pile up place place provide provide put put render render roll up roll up roll up roll up supply supply support support

Fund Hyponyms

Words that are more specific than the original word.

absorb absorb bank deposit bank deposit bankroll bankroll base base budget budget cache cache closed-end fund closed-end fund closed-end investment company closed-end investment company deposit deposit face-amount certificate company face-amount certificate company fixed investment trust fixed investment trust government issue government issue grubstake grubstake hedge fund hedge fund hedgefund hedgefund hoard hoard infrastructure infrastructure issue issue military issue military issue mutual fund mutual fund mutual fund mutual fund mutual fund company mutual fund company nest egg nest egg nondiscretionary trust nondiscretionary trust open-end fund open-end fund open-end investment company open-end investment company pension fund pension fund petty cash petty cash provision provision real estate investment trust real estate investment trust reit reit revolving fund revolving fund savings savings seed stock seed stock sinking fund sinking fund slush fund slush fund stash stash superannuation fund superannuation fund take over take over trust fund trust fund unit investment trust unit investment trust unit trust unit trust war chest war chest