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Mutual Funds

Glossary of Key Mutual Fund Terms

Index Fund
An index fund is a mutual fund that attempt to achieve the same return as a given market index or the total market index.

Investment Adviser
An investment advisor is a person or business entity that offers individuals specific advice on investing.  These persons receive compensation for their advice, and may manage entire mutual funds or securities portfolios.

Mutual Fund
A mutual fund is the commonly referenced term for open-end investing companies.  Mutual funds gather the money of a large number of investors and then invest these funds in market securities.  To maintain ownership in a mutual fund, companies offer shares to consumers to purchase directly from the mutual fund.

Portfolio
A portfolio is the summation of a company’s or an individual’s total holdings of bonds, stocks, assets, and other securities.

Prospectus
A prospectus details a mutual fund to possible investors.  In the prospectus, costs, objectives, risk, and prior performance are all covered.  Every mutual fund issues a prospectus.

Shareholder Service Fees
Shareholder service fees are paid by investors to receive information on their investments and address any other concerns or questions.

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