Different Types of Mutual Funds and How They Are Priced What are 4 types of investments? There are four types of mutual fund investments: equity, bond, money market, and balanced. Each type of investment has its own set of characteristics and risks. 1. Equity funds: Equity funds are mutual funds that invest in stocks. They … Read more
A momentum fund is a mutual fund that invests in stocks that have been showing strong price momentum. These stocks are typically those that have been recently outperforming the market. Momentum funds are often used by investors who are looking to capitalize on short-term trends in the market. While these funds can be risky, they … Read more
A non-registered account is an investment account that is not registered with the Canadian government. This type of account is typically used for investing in mutual funds, stocks, bonds, and other securities. What is the difference between registered and non-registered GIC? The main difference between registered and non-registered GICs is that registered GICs offer tax-sheltered … Read more
A Multiple Manager is a type of mutual fund that employs multiple investment managers to invest the fund’s assets. The individual managers are typically chosen for their expertise in specific asset classes or investment strategies. Multiple Manager funds can offer investors greater diversification and the potential for higher returns than a single manager fund. However, … Read more
What Is a Capital Gains Distribution? How Is It Taxed? Do all capital gain distributions have to be reported on Schedule D? All capital gain distributions from mutual funds must be reported on Schedule D of Form 1040. Do you pay taxes on distributions? Yes, you pay taxes on distributions from a mutual fund. The … Read more
Rights of accumulation (ROA) is a term used in the mutual fund industry that refers to an investor’s ability to reinvest their dividends and capital gains distributions back into the fund without having to pay any additional taxes on those distributions. This allows investors to compound their returns over time and potentially increase their overall … Read more
A periodic payment plan is a regular investment plan whereby an investor contributes a fixed sum of money at fixed intervals (usually monthly) to a mutual fund. The money is then used to purchase units in the fund, which are then held by the investor. The main advantage of a periodic payment plan is that … Read more
A back-end load is a fee that is charged when an investor sells shares of a mutual fund. This fee is also sometimes referred to as a “deferred sales charge.” Back-end load fees are typically assessed as a percentage of the total value of the shares being sold, and they can vary depending on how … Read more
The NAV Return definition is a calculation of the return on a mutual fund’s investment based on the change in the fund’s NAV (net asset value) over time. The NAV return includes both the appreciation or depreciation of the fund’s investments, as well as any dividends or other distributions paid out by the fund. To … Read more
The Morningstar Risk Rating is a measure of a mutual fund’s volatility in comparison to other funds in its category. The rating is derived from a fund’s downside deviation, which is a measurement of how much a fund’s returns vary from the market. The riskier the fund, the higher the rating will be. What is … Read more
