Franking credits are a type of tax offset that are available to Australian taxpayers who receive dividends from certain types of investments, including shares and managed funds. Franking credits can help to reduce the amount of tax that dividend investors have to pay on their income, as they effectively offset the tax that has already … Read more
An allocation rate is the percentage of a mutual fund’s assets that are invested in each asset class. The allocation rate is decided by the fund manager and is based on the fund’s investment objectives. What is the amount of fund allocated? The amount of fund allocated is determined by the mutual fund company. The … Read more
A Certified Fund Specialist (CFS) is a professional designation awarded by the Institute of Business & Finance (IBF) to individuals who complete a course of study in mutual funds. The CFS designation is granted to those who successfully complete the Certified Fund Specialist Program, which is a comprehensive curriculum that covers all aspects of the … 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
A diversified fund is a mutual fund that invests in a variety of different asset classes. This type of fund is often used as a core holding in a portfolio, as it can offer diversification and help to reduce overall risk. Diversified funds can invest in a range of different asset classes, including stocks, bonds, … Read more
The term “style” in investing typically refers to the investment strategy or strategies employed by a particular mutual fund. For example, a mutual fund may employ a growth strategy, which focuses on stocks that are expected to experience above-average growth. Alternatively, a mutual fund may employ a value strategy, which focuses on stocks that are … Read more
A Z-Share is a type of mutual fund share class that is designed for investors who are willing to pay a higher upfront fee in exchange for lower ongoing fees. The “Z” in Z-Share stands for “zero-load,” which means that there are no sales charges or commissions associated with these shares. Is Z class A … Read more
A fund overlap occurs when an investor owns more than one mutual fund that invests in similar securities. This can happen when an investor buys multiple funds from the same fund family or when an investor buys funds from different families that invest in the same sector. Overlapping funds can be beneficial if the funds … Read more
A Statement of Additional Information (SAI) is a disclosure document that provides additional information about a mutual fund that is not required to be disclosed in the fund’s prospectus. The SAI is filed with the Securities and Exchange Commission (SEC) as part of the fund’s registration statement. The SAI typically includes information about the fund’s … Read more
