Plain-English definitions for the terms you'll encounter on your financial journey.
An annual marketing or distribution fee on a mutual fund used to pay for promotion and broker commissions.
A type of mutual fund or ETF with a portfolio constructed to match or track a market index.
A mutual fund that comes with a sales charge or commission paid by the investor.
A type of mutual fund that invests in high-quality, short-term debt instruments and cash equivalents.
An investment vehicle made up of a pool of money collected from many investors to invest in securities.
Net Asset Value: This is the total value of a fund's assets minus its liabilities, divided by the number of shares currently available. It is basically the 'price tag' for a single share of a mutual fund at the end of the business day.
A mutual fund in which shares are sold without a commission or sales charge.
A type of mutual fund that does not have a fixed number of shares and can issue new shares as needed.
A mutual fund that automatically adjusts its asset mix to become more conservative as a specific date approaches.