Unit 10: Pooled Products

A balanced fund holds a mix of … for appreciation and … for income.

equities and bonds

Orders to buy sell shares of an open-end investment company are filled at the next computed price, which will typically be 4 p.m.

Orders to buy shares, at the …, are based off the next … calculated, at … that day or … the next day if the order is submitted after ….

Orders to sell shares, redeemed back to the fund family at …, is calculated at the same times

buy shares at POP, sell shares by redeeming back at NAV. if order is before 4pm that day, receive the 4pm calculated NAV that day. if after, receive the next day’s 4pm NAV

The 12b-1 fee is … from the sales load, funds can/can;t have other fees for additional services, the maximum 12 b-1e fee allowed annually is …, and is/isn’treflected in the expense ratio

seperate from the sales load, funds can have other fees, maximum annual is 1% of AUM, is reflected in the expense ratio

Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers. A higher portfolio turnover results in higher/lower trading expenses, which are/aren’t included in and will/won’t elevate the fund's expense ratio.

higher trading expenses, are incldued and will raise expense ratio

New issues, including mutual funds, can/can/t be purchased on margin. However, both may be used as margin collateral …

new issues can’t be purchased on margin and can be used as margin collateral over owning for 30 days