Umbrella Fund Law and Legal Definition
An umbrella fund is an investment fund containing several distinct sub-funds which in effect are traded as individual investment funds in a different market or country. It is an investment fund that invests in other funds rather than in direct investments. Umbrella fund was originally developed in the European investment management industry. An umbrella fund is sometimes known as a fund of funds. The umbrella fund structure makes it cheaper for depositors to move from one sub-fund to another.