Tag: mutual

ETF Wrap definition explanation

What is ETF Wrap?
A type of special investment portfolio where an investor, with or without the aid of an investment advisor, invests solely in exchange traded funds (ETFs). The composition of each ETF class is initially based on a preselected asset allocation model, and will periodically need to be rebalanced in response to changes in market values. Read more for examples and further explanation including related video clips and also comments
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Back-End Load definition explanation

What is Back-End Load?
A fee (sales charge or load) that investors pay when selling mutual fund shares within a specified number of years, which usually ranges between five to ten years. The fee amounts to a percentage of the value of the share being sold. The fee percentage is highest in the first year and decreases yearly until the specified holding period ends, at which time it drops to zero.

Also known as a “”contingent deferred sales charge or load.”” Read more for examples and further explanation including related video clips and also comments
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Statement of Additional Information – SAI definition explanation

What is Statement of Additional Information – SAI?
A supplementary document to a mutual fund’s prospectus that contains additional information about the fund and includes further disclosure regarding its operations. Also, known as “”Part B”” of the fund’s registration statement. Read more for examples and further explanation including related video clips and also comments
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Investment Style definition explanation

What is Investment Style?
The overarching strategy or theory used by either a retail investor or an institutional money manager to set asset allocation and choose individual securities for investment. The investment style of a fund helps set expectations for long-term performance potential and aids in advertising the fund to investors looking for a specific type of market exposure. Read more for examples and further explanation including related video clips and also comments
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Emerging Market Fund definition explanation

What is Emerging Market Fund?
A mutual fund or exchange-traded fund that invests the majority of its assets in the financial markets of a single developing country or a grouping of developing countries. For the most part, these countries are in Eastern Europe, Africa, the Middle East, Latin America, the Far East and Asia. Read more for examples and further explanation including related video clips and also comments
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Go-Go Fund definition explanation

What is Go-Go Fund?
A slang name for a mutual fund that has an investment strategy that focuses on high-risk securities in an attempt to capture above average returns. A go-go fund’s aggressive approach usually involves holding large positions in growth stocks. Read more for examples and further explanation including related video clips and also comments
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Separate Account definition explanation

What is Separate Account?
1. A privately managed investment account opened through a brokerage or financial advisor that uses pooled money to buy individual assets.

2. In the context of variable annuities, these are payments made to an insurance company for the purpose of investing in securities. These securities are kept separate from the insurer’s general investments. Read more for examples and further explanation including related video clips and also comments
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Automated Customer Account Transfer Service – ACATS definition explanation

What is Automated Customer Account Transfer Service – ACATS?
A system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. The National Securities Clearing Corporation (NSCC) developed the ACATS system, replacing the previous manual asset transfer system with a fully automated and standardized one. Read more for examples and further explanation including related video clips and also comments
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