An investment strategy for an individual portfolio or pooled funds vehicle such as a mutual fund. Only equity securities are considered for investment…

An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense…

A type of mutual fund that charges its holders 12B-1 fees instead of up-front or back-end commissions. 12B-1 funds take a portion of assets held and use…

A no-load mutual fund that is allowed to use fund assets to pay for its distribution costs. The 12B-1 plan mutual fund is an alternative to paying the…

A mutual fund that has long positions and short positions in its portfolio. Specifically, in a 130/30 mutual fund, the fund is long 100% of its assets…

В семье различных классов паевых инвестиционных фондов, этот класс, который обычно характеризуется дополнительной структорной платой. Паевые фонды Класса…

The return that an asset achieves over a certain period of time. This measure looks at the appreciation or depreciation (expressed as a percentage) that…

1. A general financial strategy in which an investor attempts to build the value of his or her portfolio to a desired size.2. In the context of mutual…

A line item in a fund-of-funds' prospectus that shows the operating expenses of the underlying funds. This became a requirement as of January 2007 and…

The use of a human element, such as a single manager, co-managers or a team of managers, to actively manage a fund's portfolio. Active managers rely on…

A type of risk that a fund or managed portfolio creates as it attempts to beat the returns of the benchmark against which it is compared. In theory, to…

An academic study conducted by researchers from Yale in 2006. The active-share study examined the proportion of stock holdings in a mutual fund's composition…

An exchange-traded fund that has a manager or team making decisions on the underlying portfolio allocation or otherwise not following a passive investment…

1. The person or company responsible for making investments on behalf of, and/or providing advice to, investors. 2. In the context of the mutual fund…

The fee that is paid to a financial advisor for recommending a load mutual fund based on the needs and time-frame of an investor. Fees differ according…

The actual expense paid by mutual fund investors. The after reimbursement expense ratio is calculated by subtracting any reimbursements made to the fund…

A mutual fund that attempts to achieve the highest capital gains. Investments held in these funds are companies that demonstrate high growth potential…

A mutual fund that tends to perform reasonably well during both favorable and unfavorable  economic and market conditions. This type of investment result…

A stock mutual fund that invests in equity securities without regard to whether a company is characterized as small, medium or large. The term "cap" is…

The percentage of an investor's initial cash or capital outlay that actually goes toward the final investment. This amount is net of any fees that may…

1. A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance…

Any security that, when added to an existing portfolio of assets, generates excess returns or returns higher than a pre-selected benchmark without additional…

An association of American life insurance carriers based in Washington D.C. The American Council of Life Insurance deals with legislation on all levels…

1. An annual publication that public corporations must provide to shareholders to describe their operations and financial conditions. The front part of…

The percentage rate at which a mutual fund or exchange-traded fund replaces its investment holdings on an annual basis. Turnover is meant to adjust for…

A rule created by the Financial Industry Regulatory Authority (FINRA) to protect individual investors from conflicts of interest that may arise when brokerage…

The time period for which a limited partnership expects to hold a specific asset. A firm will disclose its anticipated holding period on assets through…

A ratio used to measure the quality of a fund's investment picking ability. It compares the fund's alpha (or the adjusted return of the fund assuming the…

A list of pre-selected securities that are deemed fit for purchase by a mutual fund or the clients of a brokerage firm.In both cases, the intent is to…

An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and…

A mutual fund that provides investors with a portfolio of a fixed or variable mix of the three main asset classes - stocks, bonds and cash equivalents…

A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. The…

The relative percentages of core asset classes such as equities, fixed income and cash, along with real estate and international holdings, found within…

A company that invests its clients' pooled fund into securities that match its declared financial objectives. Asset management companies provide investors…

The total market value of the securities in a mutual fund's portfolio. Total assets or total net assets are also used to describe a fund's size. When…

The market value of assets that an investment company manages on behalf of investors. Assets under management (AUM) is looked at as a measure of success…

A performance-evaluation tool used to analyze the abilities of portfolio or fund managers. Attribution analysis uncovers the impact of the manager’s investment…

An investment program that allows investors to contribute small amounts of money, such as $20 a month in regular intervals. Funds are automatically deducted…

An investment program in which capital gains or other income received from investments are automatically used for reinvestment purposes. In the case of…

A percentage figure used when reporting the historical return, such as the three-, five- and 10-year average returns of a mutual fund. The average annual…

A way of calculating cost basis when figuring out gains or losses from a sale of mutual fund shares. This is done by adding up the number of shares owned…

A class in a family of multi-class mutual funds. This class is characterized by a back-end load structure that is paid only when the fund is sold. Class…

A fee (sales charge or load) that investors pay when selling mutual fund shares within a specified number of years, usually five to 10 years. The fee…

A fund that combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds…

The percentage of a fund's average net assets that is used to cover the annual operating expenses of managing a mutual fund before reimbursements are…

A standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-segment…

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset…

A category of equity mutual funds with portfolios that are made up of a mix of value and growth stocks.This is also referred to as a "hybrid fund". A…

A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the investment scope of the funds…

A type of exchange-traded fund (ETF) that exclusively invests in bonds. Bond ETFs are very much like bond mutual funds in that they hold a portfolio of…