Tag: short term

Style definition explanation

What is Style?
The investment approach or objective that a fund manager uses to make choices in the selection of securities for the fund’s portfolio. While there are a variety of styles, there are nine basic investing styles for both equity and fixed-income funds. For stock funds, company size and value/growth characteristics determine the style. For bonds, style is defined by maturities and credit quality. Read more for examples and further explanation including related video clips and also comments
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Rolling Hedge definition explanation

What is Rolling Hedge?
A strategy for reducing risk that involves using the high levels of liquidity typically present with exchange-traded futures and options in order to achieve a continual risk-offsetting position. A rolling hedge is done by closing out existing positions as they near maturity and then concurrently opening new positions with maturity dates further in the future. Read more for examples and further explanation including related video clips and also comments
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Spread-Load Contractual Plan definition explanation

What is Spread-Load Contractual Plan?
A fee-payment structure applicable to mutual funds in which the sales charge or commission (load) is not entirely paid at the time the investor first contributes funds to the mutual fund (or in the first several contributions either). Instead, the mutual fund load is dispersed across an extended time period, so that the load is more accurately applied to each contribution. Read more for examples and further explanation including related video clips and also comments
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Money Market definition explanation

What is Money Market?
A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements (repos). Read more for examples and further explanation including related video clips and also comments
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Estimated Current Return definition explanation

What is Estimated Current Return?
The estimated return for a unit investment trust over the short term. The estimated current return is calculated by taking the estimated annual interest income from the securities of the portfolio and dividing by the maximum public offering price, net of the maximum sales charge for the trust.

This measure is less exact than the estimated long-term return and is more susceptible to interest rate risk during the life of the portfolio. Read more for examples and further explanation including related video clips and also comments
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Fixed-Income Style Box definition explanation

What is Fixed-Income Style Box?
Created by Morningstar, a fixed-income style box is designed to visually represent the investment characteristics of bonds and bond mutual funds. This is a valuable tool for investors to use to determine the risk-return structures of their bonds/ bond portfolios and/or how these investments fit into their investing criteria.

Also referred to as a “”bond style box””. Read more for examples and further explanation including related video clips and also comments
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