What are Crossover Funds?

Crossover funds invest in both publicly traded companies and privately held ones. Crossover funds offer mutual fund investors a higher potential return. While most mutual funds are designed to offer a steadier return over time, a crossover fund is designed to be a high-yield, high-growth fund. Crossover funds are higher risk, however. Due to the high risk, this type of fund is not recommended for some investors, especially those nearing retirement age. Crossover funds are considered a better long-term investment than short term. Investors in crossover funds should be prepared to accept a good deal of volatility.