Tag: funds

Tax-Efficient Fund definition explanation

What is Tax-Efficient Fund?
A mutual fund in which structure and operations are based on reducing the tax liability that its shareholders face. Reducing the tax liability of a fund is done in three main ways:

1. By purchasing tax-free (or low taxed) investments such as municipal bonds.
2. Keeping the fund’s turnover low, especially if the fund invests in stock. Stocks held for more than one year are taxed at a lower long-term capital gains rate than short-term transactions.
3. Avoiding or limiting income-generating assets, such as dividend-paying stocks, which create a tax liability at each dividend issuance. Read more for examples and further explanation including related video clips and also comments
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Investment Company Act Of 1940 definition explanation

What is Investment Company Act Of 1940?
Created in 1940 through an act of Congress, this piece of legislation clearly defines the responsibilities and limitations placed on fund companies that offer investment products to the public. Read more for examples and further explanation including related video clips and also comments
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Expense Ratio definition explanation

What is Expense Ratio?
A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund’s operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund’s assets and lower the return to a fund’s investors.

Also known as “”management expense ratio”” (MER). Read more for examples and further explanation including related video clips and also comments
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Integrated Pension Plan definition explanation

What is Integrated Pension Plan?
A pension plan that is tied to an individual’s Social Security payments to determine the total benefit that the plan participant should receive.

The actual amount sent to the recipient in a defined benefit integrated pension may be reduced by a dollar amount equal to all or a percentage of the person’s annual Social Security payment. Read more for examples and further explanation including related video clips and also comments
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China Concepts Stock definition explanation

What is China Concepts Stock?
The stock of a company whose assets or earnings have significant activities in China. China concepts stocks will trade on different stock exchanges such as the Hong Kong exchange, under the name of H-Shares or “”red chip”” stocks. The People’s Republic of China is undergoing major financial transformation, so many leading mainland-based companies chose to list themselves elsewhere to gain access to investor capital as quickly as possible.

The China concepts stocks are considered one of the purest investment plays on China’s long-term economic growth outside of direct mainland investment. Read more for examples and further explanation including related video clips and also comments
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Protected Fund definition explanation

What is Protected Fund?
A type of mutual fund that guarantees an investor at least the initial investment, plus any capital gains, if it is held for the contractual term. The idea behind this type of fund is that you will be exposed to market returns because the fund is able to invest in the stock market, but you will have the safety of the guaranteed principal. Read more for examples and further explanation including related video clips and also comments
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Retail Fund definition explanation

What is Retail Fund?
A type of fund that is registered with the Securities and Exchange Commission (SEC) and is sold to individual investors through investment dealers and in open market transactions. Retail funds are often categorized as mutual funds, and carry lower initial investments and management expense ratios than non-retail funds. Read more for examples and further explanation including related video clips and also comments
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Venture Capital Funds definition explanation

What is Venture Capital Funds?
An investment fund that manages money from investors seeking private equity stakes in startup and small- and medium-size enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities. Read more for examples and further explanation including related video clips and also comments
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