Cpcu 556

A registered investment company that offers investors an interest in a portfolio of investment assets

An investment fund or company, such as a mutual fund, that does not have a fixed number of outstanding shares, Instead, the number of shares is continually changing as investors purchase or redeem shares

The price from purchase or redemption of shares in an open end fund, based on the most recent net asset value of the shares: the total value of all securities and other assets held by the fund, less any fund liabilities, divided by the number of outstanding shares. It is calculated daily

An investment fund or company that may issue a fixed number of shares, or issue bonds and preferred stock to leverage the position of the common shareholders

A fund that levies sales charges on investors as a cost or "load" for executing transactions.

An arrangement in which the investor pays a charge when purchasing mutual fund shares but then pays no charge when redeeming them

An arrangement in which there is no charge of a sales commission when the shares are purchased or redeemed

An annual sales fee, levied by some mutual funds, taken against fund assets to reimburse the fund for distribution costs

A contingent deferred sales fee charged by some mutual funds if shares are redeemed within a few years of their purchase or at any time after the original date of purchase, sometimes on a reducing scale

A fund that is known for charging a relatively lower load at purchase

The point at which the percentage load for a mutual fund is normally reduced as an investor makes larger dollar purchases

An investor discount that may occur on the basis of previous mutual fund purchases, which may be taken into account when determining the sales load at the time an additional purchase is made

Annual fees, consisting of investment fees and other expenses, charged against a mutual fund purchases, which may be taken into account when determining the sales load at the time an additional purchase is made

A registered investment company that generally buys and holds a relatively fixed portfolio of stocks, bonds, or other securities until its termination; it does not actively manage the investment portfolio over its lifetime and also has a stated date for termination

A mutual fund acquisition plan that allows an investor to periodically invest in the fund, without having to make any binding commitment. Any sales charge is level for each purchase made, and the investor can terminate the plan at any time without penalty

A mutual fund acquisition plan in which an investor agrees to invest a certain amount in periodic payments over a specified time period

a mutual fund acquisition plan that is essentially an outright purchase under a contractual type arrangement. The shares are held by a bank as custodian

An acquisition plan used by mutual funds whereby investors can reinvest dividends and capital gains distributions from the fund in additional fund shares

A plan offered by mutual funds that allows an investor to withdraw a certain dollar amount from the fund per month, as long as fund shares are available

A class of mutual funds that invest its assets in common stocks

A category of equity funds whose primary investment objective is capital appreciation rather than current dividend income; they hold the common stocks of more established, larger growth-type companies

A category of equity funds whose primary investtment policies more aggressive and riskier than for growth funds. These funds may hold common stocks in start up companies, newer industries, and turnaround situations, as well as regular growth-type stocks.

A category of equity funds known as total returns funds. They invest in common stocks of well established companies that are expected to show reasonable growth of principal and income and that also pay reasonable current dividends

A category of equity funds known as total return. They tend to invest in common stocks of companies with stable and good dividend returns. The emphasis is on secure dividend yields and not on capital appreciation

A category of equity funds that invests in dividend paying common stocks, seeking to maximize current return by writing call options on the stocks they hold

A category of equity funds that invests mainly in the stocks of foreign companies

A category of equity funds that invests in common stocks of both foreign and U. S. companies

A category of equity funds that invests in common stocks of smaller, lesser-known companies

A category of equity funds that invests primarily in common stocks of gold mining companies and companies that produce other precious metals

A category of equity funds that invests in common stocks of companies in particular fields or industries, such as financial services, healthcare, science and technology, and utilities

Funds that maintain a diversified portfolio in terms of kinds of investment media

A category of hybrid funds that are required to maintain a fixed weighting of stocks, bonds, and perhaps money market instruments. Thus, they may enable investors to implement an asset allocation strategy through the purchase of one mutual fund, rather than several funds or other assets

A category of hybrid funds whose investment approach is to support a diversified portfolio of common stocks, preffered stocks, and bonds. the objectives of these funds are to conserve principal, pay reasonable current income, and achieve long term growth in principal and income consistent with the prior two objectives

A category of hybrid funds that is similar to balanced funds.They differ from balanced funds mainly in that they may change their asset allocation more rapidly and may hold up to 100 percent of their assets in only one type of asset at any given time

A category of hybrid funds whose investment objective is high current income. This is achieved by investing in good dividend paying common stocks and also corporate and government bonds

Funds that invest primarily in taxable bonds of various kinds, depending on the investment objective of the particular fund. There is no fixed maturity date for the bond mutual fund shareholder, and the net asset value (NAV) of the bond fund shares fluctuates with the current market prices of the bonds in its portfolio.

a category of taxable bond funds that invest primarily in U.S. Treasury bonds. They are veiwed as safe in terms of financial risk, and their interest rate risk depends on their average duration

A category of taxable bond funds that seeks a higher yield by investing in a variety of U.S. Treasury bonds, federally guaranteed securities, and other government securities

A category of taxable bond funds whose objectives is to invest in a diversified portfolio of high quality bonds. They are viewed as low financial risk, and their interest rate risk depend onthe bonds' maturity and call protection

A category of taxable bond funds whose objectives is to secure higher yeild by accepting the greater financial risk of buying lower quality bonds

A category of taxable bond funds that invest in a combination of corporate bonds and government bonds for greater yield

A category of taxable bond funds that invest in the bonds of foreign companies, foreign governments, or both

A category of taxable bond funds that invest in the bonds of foreign companies and countries as well as bonds originating in the United States

Funds that invest in the bonds and other securities issued by states, cities, and other municipalities throughout the nation

Funds that invest only in the securities of a particular state. This enables the residents of that particular state to buy a fund for their state only and thus have tax free interest income from the fund for both federal and state and local income tax purposes

Funds whose dividends paid to shareholders are considered gross income to those shareholders for federal income tax purposes and perhaps for state and local income taxes. Some funds may invest only in direct U.S. Treasury obligations, while others may invest in various money market investments, such as CD's commercial paper, and bankers' acceptances

Funds whose dividends paid to shareholders are generally excluded from those shareholders' gross income for federal income tax purposes and may also be excluded for state and local income tax purposes. these funds may be national tax exempt money market funds or state tax exempt money market funds

Funds whose portfolios are constructed to duplicate or track a specific group or index of securities. They are considered to be passively managed because the fund manager does not attempt to pick individual securities but only to track the outside index

A close end investment company, effectively two companies in one, based on the premise that some investors are interested exclusively in capital gains while others are interested only in income. Thus, half of a dual fund's shares are sold as capital shares, and the other half as income shares

A means of evaluating the administrative performance of a mutual fund by expressing the fund's total operating expenses as a percentage of fund income

A commonly used measure of a mutual fund's investment performance, determined by analyzing the fund's total return over a time period

A mutual fund formula used to show total return performance over a time period; the compound level rate of return required each year to cause the initial share value to equal the share value at the end of the period, assuming reinvestment of income dividends and capital gain distributions

the significant difference that develops between the investment style policies proclaimed by a fund and those actually followed

A method of identifying the income tax basis of mutual fund shares that a shareholder sells, redeems, or exchanges, if those shares were acquired over time and for different prices; the shareholder may assume that the earliest acquired shares were those sold

one of two average cost methods for determining basis and holding period for mutual fund shares that a shareholder sells, redeems, or exchanges, if those shares were acquired over time and for different prices. Shares are divided into two groups: those held for over one year and those held for one year or less. Shares in each group are then assessed on an averaged tax basis

One of two average cost methods for determining basis and holding period for mutual fund shares that a shareholder sells, redeems, or exchanges, if those shares were acquired over time and for different prices. All shares are placed into one group, and each share has an averaged tax basis

A domestic hedge fund organized with its investors as limited partners and with the investment managers as the general partners who run the partnership's general affairs