Mutual Funds

Mutual Funds

A collection of shareholders’ money that is invested in an assortment of different securities.

Prospectus

Document that contains all vital information about the fund.

Net Asset Value (NAV)

The total value of a fund’s investment portfolio, minus its liabilities, divided by its number of outstanding shares.

Diversification

Spreading out your investment dollars among a number of different securities.

Open-End Funds

Funds that have no limit on the number of shares that it can issue or the amount of money it can hold.

Closed-End Funds

The fund has a set number of shares it can issue before it is established.

Stock Fund

Funds that invest in stocks.

Growth Fund

Growth funds invest in stocks that are most likely to appreciate in value over the short time.

Value Fund

Funds that invest in stocks that tend to be 'good bargains' and sell at low prices.

Blend Fund

Contains both growth and value stocks.

Sector Fund

Invests in stocks from one specific industry.

International Fund

Invest in stocks from overseas companies.

Bond Fund

A collection of shareholders’ money that is pooled to invest in a variety of different bonds.

Balanced Fund

Invests in both stocks and bonds.

Money Market Fund

Invests in a variety of different securities that provide relatively higher rates of return over the short term.

Index Fund

Copies the performance of a particular stock market index.

Exchange-Traded Fund (ETF)

Funds that allow you to buy shares in an entire stock portfolio and they can be traded like individual stocks.

Spider (SPDR)

Represents ownership in the S&P 500.

Cubes (QQQ)

The Nasdaq 100 Trust.