Term
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Definition
| An investment fund that raises funds from investors, pools the money, and invest it in stocks, bonds, and other investments. Each investor owns a share of the fund proportionate to the amount of his or her investments |
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Definition
| A firm that invests the pooled money of a number of investors in return for a fee |
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| Open-End Investment Company or Mutual Fund |
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Definition
| A mutual fund that has the ability to issue as many shares as investors want. The value of all the investments that the fund holds determines how much each share in the mutual fund is worth |
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Definition
| The dollar value of a share in a mutual fund. It's the value of the fund's holdings (minus an debt) divided by the numebr of shares outstanding |
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| Closed-End Investment Company or Mutual Fund |
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Definition
| A mutual fund that can't issue new shares. These funds raise money only once by issuing a fixed number of shares, and thereafter the stares can be traded between investors. The value of each share is determined both by the value of the investments the fund holds and investor demand for shares in the fund |
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Definition
| A fixed pool of securities, generally municipal bonds, in which each share represents a proportionate ownership interest in that pool. The bonds are purchased and then held until maturity, at which time the trust is dissolved |
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| Real Estate Investment Turst or (REIT) |
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Definition
| An investment vehicle similar to a mutual fund that specializes in real estate investments, such as shopping centers or rental property, or that makes real estate loans |
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Definition
| A sales commission charged on a mutual fund |
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Definition
| A mutual fund on whcih a load or sales commission is charged |
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Definition
| A commission that's charged only when the investor liquidates his or her holdings |
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Definition
| A mutual fund that doesn't charge a commission |
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Definition
| The ratio of a mutual fund's expenses to its total assets |
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Definition
| A measure of the level of a fund's trading activity, indicating what percentage of the fund's investments are turned over during the year |
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Definition
| An annual fee, generally ranging from 0.25 to 1.00 percent of a fund's assets, that the mutual fund charges its shareholders for marketing costs |
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Term
| Money Market Mutual Funds |
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Definition
| Mutual funds that invest in Treasury bills, certificates of deposit, commercial paper, and other short-term notes, generally with a maturity of less than 30 days |
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Term
| Tax-Exempt Money Market Mutual Fund |
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Definition
| A money market mutual fund that invests only in very short-term municipal debt |
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| Government Securities Money Market Mutual Fund |
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Definition
| A money market mutual fund that invests soley in U.S. government securities in order to avoid any risk whatsoever |
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Definition
| Mutual funds that invest primarily in common stock |
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Definition
| A mutual fund that tries to "balance" the objectives of long-term growth, income, and stability. To do this, these funds invest in a mix of common stock and bonds, as well as preferred stock in some cases |
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Term
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Definition
| A mutual fund that invests in a mix of stocks, bonds, and money market securities |
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Definition
| Mutual funds that try to tailor their holdings to the investor's individual characteristics, such as age and risk tolerance |
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Definition
| A mutual fund that professionally managed for an investor's stage of retirement with the investments in teh fund automatically growing more conservative as the investor's retirement date nears |
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Definition
| Mutual funds that invest primarily in bonds |
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| ETFs or exchange traded funds |
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Definition
| A hybrid between a mutual fund and an individually traded stock or bond that trade on an exchange just as individual securities do and can be bought and sold throughout the trading day |
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Term
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Definition
| A description of the mutual fund, including the fund's objectives and risks, its historical performance, its expenses, the manager's history, and other information |
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