Investment that pools the money of many individual investors.
What is a mutual fund?
100
An advantage to investing in mutual funds is that securities are chosen, bought and sold by these individuals, not investors.
What is the mutual fund manager(s)?
100
A commission paid when purchasing shares of a mutual fund.
What is a load?
100
Fund whose objective is to invest in a particular industry or area of the economy.
What is a sector fund?
100
The Morning Star rating system was developed by this company.
What is Morning Star, Inc.?
200
True or False: Mutual Funds invest only in stocks.
What is false?
200
Two strategies for managing mutual funds.
What is active and passive fund management?
200
Two types of mutual fund load.
What is front-end ( paid when purchasing shares) and back-end (paid when redeeming shares) load.
200
Funds that invest in companies that pay dividends and may invest in convertible securities. These funds are intended for long-term growth with limited risk.
What is an equity income fund?
200
Funds that invest in bonds issued by companies that operate in emerging markets.
What is an emerging market fund?
300
One major benefit to mutual fund investing, that helps to minimize risk.
What is diversification?
300
A mutual fund that attempts to beat the market, often requiring extensive research.
What is an actively managed fund?
300
Fee the fund charges you for the management of investment securities within the funds portfolio, in other words the charge paid to the manager of the fund for their service.
What is the management fee?
300
A fund whose objective is to provide both growth of capital and a stream of income.
What is growth and income fund?
300
The Vanguard 500 Fund (VFINX) owns all 500 stocks in this index.
What is the S+P 500?
400
This number, calculated at the end of each trading day, is the value of a mutual fund's assets, minus liabilities, divided by number of shares outstanding.
What is Net Asset Value?
400
Lower risk fund that does not attempt to beat the market, but instead mirrors the performance of an index, can be called these two names.
What is a passively managed fund and an index fund?
400
Fee paid for the paperwork, client statements, legal expenses, accounting and even answering the phone.
What is the administration fee?
400
A fund that invests in both stocks and bonds
What is a hybrid fund?
400
This famous fund manager wrote the books "Learn to Earn" and "One up on Wall Street".
Who is Peter Lynch?
500
This five star rating system measures the performance and success of mutual funds.
What is the MorningStar Rating system?
500
On average, this percentage of active managers have beaten the performance of the S+P 500?
What is 20%?
500
Fee for fund's advertising and marketing costs, often called pointless by investors.
What is the 12b-1 fee?
500
A fund that raises money only once, through an IPO, and offers only a fixed number of shares.
What is a closed-end fund?
500
An investor who is more concerned with high returns than the safety of the principal.