what is feeder fund
A Brief Explanation of a Feeder Fund | Definition. A feeder fund is a fund that is a part of a larger group of funds, or the master fund. The feeder funds âfeedâ into the larger fund, which then manages the funds as a single portfolio. The master fund conducts the market operations and investment activities for the feeder funds. A feeder fund is attractive because it allows a fund to obtain a more favorable costs associated with the operations of a fund.