market timer
A individual who helps investors decide when to switch their investments from one fund to another fund, usually within the same family of funds.
load fund
A mutual fund in which investors pay a commission (as high as 8 1/2 percent) every time they purchase shares.
NAV
The current market value of the securities contained in the mutual fund's portfolio minus the mutual fund's liabilities divided by the number of shares outstanding
mutual fund
An investment chosen by people who pool their money to buy stocks, bonds, and other financial securities selected by professional managers who work for an investment company.
deferred sales load
A 1 to 5 percent charge that shareholders pay when they withdraw their investment from a mutual fund.
investment company
A firm that, for a management fee, invests the pooled funds of small investors in securities appropriate to its stated investment objective.
reinvestment plan
A service provided by an investment company in which shareholder income dividends and capital gain distributions are automatically reinvested to purchase additional shares of the fund.
no load fund
A mutual fund in which the individual investor pays no sales charge.
capital gain distributions
The payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.
income dividend
The earnings a fund pays to shareholders from its dividend and interest income.
exchange trade fund
A fund that invests in the stocks contained in a specific stock index, like the Standard & Poor's 500 stock index, and whose shares are traded on a stock exchange.
family of funds
A group of mutual funds managed by one investment company.
12B1 fee
A fee that an investment company levies to defray the costs of advertising and marketing a mutual fund.
closed end fund
A mutual fund whose shares are issued by an investment company only when the fund is organized.
open end fund
A mutual fund whose shares are issued and redeemed by the investment company at the request of investors.