Aggressive Growth Funds are investment funds that focus on increasing capital by investing in rapidly growing companies. These funds aim for high return potential and are inherently more volatile and risky.
A beneficial owner is a person who enjoys the benefits of ownership, even though the title is in another name.
A closed fund is a type of mutual fund that has stopped issuing shares because it has become too large. This typically occurs when the fund manager believes that accepting additional investments could hinder the fund's performance.
A custodian refers to a bank or financial institution responsible for safeguarding the assets of a mutual fund, individual, or corporation. It also describes a person who manages the care of a facility or building.
A distress sale occurs when assets, such as property, stocks, bonds, mutual funds, or futures positions, are sold urgently, often at a loss, due to immediate financial pressure.
A Fund of Funds (FoF) is a mutual fund or hedge fund that invests in a portfolio consisting of other investment funds rather than investing directly in stocks, bonds, or other securities. This investment strategy provides enhanced diversification and the potential for reduced risk by spreading investments across multiple fund managers and asset classes.
A growth fund is a mutual fund that primarily invests in growth stocks with the aim of providing capital appreciation for the fund's shareholders over the long term. These funds tend to be more volatile compared to conservative income or money market funds.
Historical Yield refers to the return on investment provided by a mutual fund, typically a money market fund, over a particular period of time. For instance, a money market fund may advertise that its historical yield averaged 4% over the last year.
A mutual fund designed to produce current income for shareholders through interest, dividends, or other income streams.
An index fund is a type of mutual fund designed to replicate the performance of a specific market index, such as the Standard & Poor's 500 Index (S&P 500). These funds aim to match the returns of the chosen index by holding identical proportions of the underlying assets.
A load fund is a type of mutual fund that requires investors to pay a sales charge, typically to compensate financial advisors and brokers who sell the fund’s shares.
A Money Market Fund is an open-ended mutual fund that invests in short-term, highly liquid and safe securities, providing investors with money market rates of interest. The net asset value generally remains constant at $1 per share, while the interest rate varies.
A mutual fund is a type of regulated investment company that pools money from shareholders to invest in a diversified portfolio of stocks, bonds, and other securities.
A no-load fund is a type of mutual fund offered by an open-end investment company that does not impose any sales charge (load) on its shareholders. Investors can buy shares in no-load funds directly from the fund companies, rather than through a broker, as is typical in load funds.
Nontaxable dividends are dividends from a regulated investment company (mutual fund) that were earned by the fund as interest from tax-exempt state and municipal debt obligations and other exempt obligations. For dividends to be tax-free, at least 50% of the regulated investment company's assets must be invested in tax-exempt obligations.
An Open-End Investment Company (commonly known as a mutual fund) is an investment vehicle that continually issues new shares and allows investors to redeem shares at any time.
A professional responsible for managing the securities portfolio of an individual or institutional investor, ensuring alignment with the client's financial goals and risk appetite.
An investment company, such as an open-end or closed-end mutual fund, that files a registration statement with the Securities and Exchange Commission and meets all the other requirements of the Investment Company Act of 1940.
A Regulated Investment Company (RIC), such as a mutual fund or Real Estate Investment Trust (REIT), is eligible under Regulation M of the Internal Revenue Service to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders to be taxed at the personal level, thereby avoiding double taxation on corporations and stockholders.
A withdrawal refers to the act of removing or taking out money from a place where it is kept, such as a bank account or a mutual fund.
