Firm managing funds for investors. An investment company may manage several mutual funds.
net asset value (NAV)
The value of each share expressed as assets minus liabilities on a per-share basis.
Unit Investment Trust
Money invested in a portfolio whose composition is fixed for the life of the fund. Shares in a unit trust are called redeemable trust certificates, and they are sold at a premium above net asset value.
Open-End (Mutual) Fund
A fund that issues or redeems its own shares at their net asset value (NAV).
Closed-End (Mutual) Fund
A fund whose shares are traded through brokers at market prices; the fund will not redeem shares at their net asset value. The market price of the fund can differ from the net asset value.
Sales charge on the purchase of some mutual funds.
A private investment pool, open to institutional or wealthy investors, that is largely exempt from SEC regulation and can pursue more speculative policies than mutual funds.
Annual fees charged by a mutual fund to pay for marketing and distribution costs.
The value of research services that brokerage houses supply to investment managers "free of charge" in exchange for the investment manager's business.
The ratio of the trading activity of a portfolio to the assets of the portfolio.
Offshoots of mutual funds that allow investors to trade portfolios of securities just as they do shares of stock.