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An investment fund that raises funds from investors, pools the money, and other investments. Each investor owns a share of the fund proportionate to the amount of his or her investment. |
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A mutual fund that has the ability to issue as many shares as investors want. As investors buy shares, the fund grows, and when they sell shares, the fund shrinks. |
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The dollar value of a share in a mutual fund. (TOTAL MARKET VALUE OF ALL SECURITIES - LIABILITIES) / TOTAL SHARES OUTSTANDING. |
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A mutual fund that cannot issue new shares. The funds raise money only once, and thereafter the shares can be traded between investors. |
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Real Estate Investment Trust (REIT) |
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An investment vehicle similar to a mutual fund that specializes in real estate investments. There are 3 types: equity, mortgage, or a hybrid of the 2. |
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A sales commission charged on a mutual fund. |
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A mutual fund on which a load or sales commission is charged. |
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A commission that is charged only when the investor liquidates their holdings. |
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A mutual fund that does not charge a commission. |
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Management Expense Ratio (MER) |
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The ratio of a mutual fund's management expenses to its total assets. It should be between .25 to 3%. |
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A measure of the level of a fund's trading activity, indicating what percentage of the fund's investments are turned over during the year. |
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Money Market Mutual Funds |
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Mutual funds that are invested in a T-bill, banker's acceptance, or commercial paper, and held for a short period of time. |
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Government Securities Money Market Mutual Funds |
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A money market fund that invests solely in Canadian government, short-term securities to avoid any risk whatsoever. |
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Mutual funds that invest primarily into common stock. |
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A mutual fund that tries to 'balance' the objectives of long-term growth, income, and stability. |
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A mutual fund that invests in a mix of stocks, bonds, and money market securities. They aggressively move funds between stocks and bonds in the aim to make profits. |
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Mutual funds that try to tailor their holdings to the investors individual characteristics. |
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Mutual funds that invest primarily in bonds. |
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