A clean share is a type of mutual fund share that does not have a front-end sales charge or a deferred sales charge. Clean shares are also sometimes referred to as “no-load” shares. What is a clean fund? A clean fund is a mutual fund that only invests in "clean" industries, such as renewable energy, clean technology, and green businesses. The goal of a clean fund is to make a profit while also promoting environmentally friendly practices. What is an inclusive fund? An inclusive fund is a mutual fund that is open to all investors, regardless of income, net worth, or investment experience. Inclusive funds are often used by financial institutions to provide basic investment options for their customers.
What are different share classes?
There are three different share classes for mutual funds: Class A, Class B, and Class C. Each class has its own benefits and drawbacks, so it's important to understand the difference between them before investing.
Class A shares typically have a front-end load, which is a fee charged when you purchase the shares. However, they also have lower annual expenses than other share classes, so they can be a good choice for long-term investors.
Class B shares don't have a front-end load, but they do have higher annual expenses. They also have a "back-end load," which is a fee charged when you sell the shares.
Class C shares have the highest annual expenses, but they don't have a front-end or back-end load. They're typically best for investors who plan to hold the shares for a short period of time.
What is a super clean share class?
A super clean share class is a type of mutual fund share class that has very low expenses. Super clean share classes typically have expense ratios of 0.10% or less. This type of share class is usually only available to large institutional investors, such as pension funds and endowments.
What are the terminologies associated with mutual funds? There are a number of terminologies associated with mutual funds. Some of the most common ones are:
Asset Allocation: This refers to the mix of different asset classes that a fund invests in. For example, a fund with a 60/40 asset allocation would invest 60% of its assets in stocks and 40% in bonds.
Expense Ratio: This is the annual fee that a fund charges its investors. It is expressed as a percentage of the fund's total assets. For example, if a fund has an expense ratio of 1%, that means it will charge $10 in annual fees for every $1,000 that is invested in the fund.
Load: This is a sales charge that is levied by some mutual funds. It is typically charged when investors purchase or sell shares in the fund.
Net Asset Value (NAV): This is the value of a fund's assets minus its liabilities. It is calculated at the end of each trading day and is used to determine the price of a fund's shares.
Portfolio Turnover: This is a measure of how often a fund's holdings are traded. It is expressed as a percentage of the fund's total assets. A high turnover rate can indicate that a fund is being actively managed and may incur higher trading costs.