front-end load: A front-end load is a sales charge that is levied when you purchase units in a mutual fund. The charge is a percentage of the amount you are investing, and is paid to the broker or financial advisor who sold you the fund. Is it worth paying a front-end load for a fund? … Read more
Undertakings for Collective Investment in Transferable Securities (UCITS) are mutual funds that are authorised to be marketed to retail investors in the European Union. UCITS must comply with a harmonised regulatory regime that provides for investor protection, minimum operational standards and depositary requirements. UCITS funds can be either actively or passively managed. Actively managed UCITS … Read more
A mutual fund custodian is an institution that is responsible for safeguarding the assets of a mutual fund. The custodian is typically a large bank or trust company that has been approved by the fund’s board of directors. The custodian’s duties include maintaining records of the fund’s holdings, collecting dividends and interest payments, and executing … Read more
A global fund is a type of mutual fund that invests in a variety of securities from all over the world. The fund may invest in stocks, bonds, and other types of securities. Global funds give investors exposure to a wide range of investments and can help diversify a portfolio. What are the 5 governmental … Read more
Acquired fund fees and expenses (AFFE) are the additional costs associated with investing in a mutual fund that are not included in the fund’s stated expense ratio. AFFE include expenses such as broker commissions and dealer mark-ups, and are unique to mutual funds. AFFE are important to consider when evaluating the true cost of investing … Read more
A mutual fund liquidity ratio is a measure of how well a mutual fund can meet investor redemptions without having to sell holdings at a discount or disrupting the overall portfolio. The higher the ratio, the more liquid the fund. To calculate a mutual fund’s liquidity ratio, divide the value of its holdings that can … Read more
A Contingent Deferred Sales Charge (CDSC) is a fee charged by some mutual fund companies when an investor sells shares of a fund within a specified time period. The fee is typically highest during the first year or two after an investor buys shares, and declines over time until it reaches zero. The fee is … Read more
A market-neutral mutual fund is a type of investment fund that aims to generate returns that are not affected by changes in the overall stock market. These funds typically invest in both long and short positions in stocks, bonds, and other securities. The goal of a market-neutral fund is to generate positive returns in both … Read more
A mutual fund’s cash level is the percentage of its assets that are invested in cash and cash equivalents, such as short-term Treasury bills. The cash level is disclosed in the fund’s prospectus and is updated daily on the fund’s website. A fund’s cash level can be a good indicator of its riskiness. A fund … Read more
A load fund is a mutual fund that charges a commission or “load” for purchasing shares. The load is typically a percentage of the amount invested, and is paid to the broker or other financial professional who sold the fund. Load funds may also charge a fee for selling shares, called a “back-end load.” Load … Read more
