An exit fee is a charge that some mutual fund companies assess when an investor sells shares of the fund. The fee is assessed by the fund company in order to cover the costs associated with the transaction. The fee is typically a percentage of the total value of the transaction, and it is deducted … Read more
As we all know, interest rates have been on the rise lately. This has caused many investors to be concerned about the impact this will have on their investments, particularly those that are income-oriented. One type of investment that can offer some protection in a rising rate environment is a floating rate fund. These funds … Read more
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, … Read more
A forward price is the price of a commodity for delivery at a specified future date. The price is set at the time of the contract, but the delivery and payment occur at a later date. A forward pricing contract is an agreement between two parties to buy or sell a commodity at a specified … Read more
Annual turnover is a measure of how often the assets in a mutual fund are traded in a given year. A high turnover rate indicates that the fund’s portfolio is constantly changing, which can lead to higher expenses and lower returns. Why is annual turnover important? Turnover is important because it impacts a fund’s expenses … Read more
A retail fund is a type of mutual fund that is made available to individual investors through broker-dealers and other financial intermediaries. Retail funds are typically open-ended, meaning that they can be bought and sold on a daily basis. The term “retail fund” is used in contrast to “institutional fund,” which refers to mutual funds … Read more
A Lipper Leader is a mutual fund that ranks within the top 20% of its category for total return over the past five years. The Lipper Leaders designation is given to funds that have consistently outperformed their peers over time, and is a coveted accolade in the mutual fund industry. Lipper Leaders are selected based … Read more
What is a Business Development Company (BDC)? How to Invest in a Business Development Company (BDC) What is BDC investment? BDC Investment is a mutual fund that invests in Business Development Companies (BDCs). BDCs are companies that provide financing to small and medium-sized businesses. BDC Investment aims to provide investors with exposure to a diversified … Read more
An active share study is a research project that investigates the percentage of a mutual fund’s holdings that differ from the holdings of its benchmark index. The study is important because it can help investors understand how much of a fund’s performance is due to the fund manager’s stock picking ability, and how much is … Read more
A Unit Investment Trust (UIT) is a type of investment company that offers a fixed portfolio of securities that is structured to provide a specific investment objective. UITs are created by investment sponsors, which are typically large banks or investment management firms. The sponsor will work with a trustee, which is typically a bank trust … Read more
