An income fund is a type of mutual fund that is designed to provide investors with regular income, typically in the form of dividends or interest payments. Income funds can invest in a variety of asset classes, including stocks, bonds, and real estate. Income funds typically have a higher distribution rate than other types of … Read more
A growth and income mutual fund is a type of investment fund that is designed to provide investors with both capital growth and income. The fund invests in a portfolio of stocks and other securities that offer the potential for both types of returns. The goal of a growth and income fund is to provide … Read more
Mutual fund timing is the process of making investment decisions based on an expected change in the market. Many investors believe that they can predict when the market will rise or fall, and they use this information to make decisions about when to buy or sell mutual fund shares. However, mutual fund timing is difficult … Read more
A long/short fund is a mutual fund that invests in both long and short positions in a variety of asset classes. The fund’s managers use a variety of investment strategies to generate returns that are not correlated with the broader market. The fund’s managers will take both long and short positions in a variety of … Read more
. Returns that differ from what is expected are either positive or negative. How is standard deviation defined in relation to investments? The standard deviation of a mutual fund is a measure of the fund’s volatility, or how much its returns fluctuate over time. It is calculated using the historical return data of the fund. … Read more
An investment fund is a type of mutual fund that pools money from many investors and invests it in a variety of securities, such as stocks, bonds, and short-term investments. Investment funds are managed by professional money managers, who attempt to produce capital gains and income for the fund’s investors. Investment funds are also often … Read more
A trailer fee is a type of sales commission paid to a broker or other financial professional for selling certain types of investment products, such as mutual funds. The fee is paid by the investment product’s sponsor, not by the investor. The fee is called a “trailer fee” because it is paid on an ongoing … Read more
The turnover ratio is a measure of how much of a mutual fund’s holdings are traded in a given year. It is calculated by dividing the value of the fund’s trades by the fund’s total assets. A high turnover ratio indicates that the fund is frequently buying and selling stocks, which may result in higher … Read more
A mutual fund subadvisor is a financial professional who is hired by a mutual fund company to provide investment advice and make investment decisions on behalf of the fund. The subadvisor is typically a registered investment advisor (RIA) or a registered investment advisor firm. A mutual fund company hires a subadvisor to provide investment management … Read more
A breakpoint sale is a type of sale in which the sales commission is decreased as the amount of money invested in the fund increases. For example, if you invest $10,000 in a mutual fund with a 5% breakpoint, you would pay a sales commission of $500. If you then increased your investment in the … Read more
