What is Flexi-Cap Fund?
A type of mutual or hedge fund that is not restricted to investing in any company with a predetermined market capitalization. This type of fund structure will be indicated in the fund’s prospectus, and will provide the fund manager with greater investment choices and diversification possibilities. Read more for examples and further explanation including related video clips and also comments
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Tag: mutual
Mutual Fund Cash Level definition explanation
What is Mutual Fund Cash Level?
The percentage of a mutual fund’s total assets that are currently held in cash or cash equivalents. While mutual fund cash level can refer to the cash level of an individual fund, it most often refers to the aggregate level of cash held across a wide demographic of mutual funds, which is used as a barometer of institutional buying power and market sentiment. Read more for examples and further explanation including related video clips and also comments
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Mutual Fund Theorem definition explanation
What is Mutual Fund Theorem?
An investing theory, postulated by Nobel laureate James Tobin, that states that all investors should hold an identically comprised portfolio of “”risky assets”” combined with some percentage of risk-free assets or cash. A conservative investor would hold a higher percentage of cash, but would have the same basket of risky investments in his or her portfolio as an aggressive investor. Read more for examples and further explanation including related video clips and also comments
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Index ETF definition explanation
What is Index ETF?
Exchange-traded funds that follow a specific benchmark index as closely as possible. Index ETFs are much like index mutual funds, but whereas the mutual fund shares can only be redeemed at one price daily, the closing net asset value (NAV), index ETFs can be bought and sold throughout the day on exchanges. Through an index ETF, investors get exposure to a large number of securities in a single transaction. Index ETFs can cover U.S. and foreign markets, specific sectors, or a specific class of stock (i.e. small-caps, ADRs, etc.) but all incorporate a passive investment strategy, only making portfolio changes when changes occur in the underlying index. Read more for examples and further explanation including related video clips and also comments
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Soft Dollars definition explanation
What is Soft Dollars?
A means of paying brokerage firms for their services through commission revenue, as opposed to through normal direct payments (hard dollar fees).
The investing public tends to have a negative perception of soft dollar arrangements because they believe that buy-side firms should pay expenses out of their profits, rather than from investors’ pockets. As such, the use of hard dollar compensation is becoming more common. Read more for examples and further explanation including related video clips and also comments
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Closed To New Accounts definition explanation
What is Closed To New Accounts?
When an investment vehicle is no longer accepting new investors, but is still operating for existing investors. This can apply to mutual funds, hedge funds or any professionally managed pooled investment vehicle. In addition, institutional money managers may close certain portfolio groups to new accounts, while leaving others open. There will be an “”as of”” date when the fund will officially close to new investors. Depending on the situation, this may or may not also affect the ability for current investors to add to their holdings in the fund. Read more for examples and further explanation including related video clips and also comments
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Debt Fund definition explanation
What is Debt Fund?
An investment pool, such as a mutual fund or exchange-traded fund, in which core holdings are fixed income investments. A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt. The fee ratios on debt funds are lower, on average, than equity funds because the overall management costs are lower. Read more for examples and further explanation including related video clips and also comments
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Exchange-Traded Fund – ETF definition explanation
What is Exchange-Traded Fund – ETF?
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Read more for examples and further explanation including related video clips and also comments
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