Mutual Funds, ETFs & Pooled Vehicles Financial Terms & Definitions

25 terms in this topic

Mutual funds, ETFs, and pooled vehicles are collective investment schemes that allow investors to buy shares in a diversified portfolio managed by professionals. Mutual funds are typically actively managed and trade at the end of the day, while ETFs trade on exchanges like stocks and often track an index. These vehicles provide diversification, liquidity, and access to various asset classes for individual investors.

M

Mutual fund

A mutual fund is a type of investment vehicle that pools money from many investors to purchase a diversified portfolio…

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P

Prospectus

A prospectus is a formal legal document that describes a security offering for sale to the public. It is required…

Full Definition
S

Sector fund

A sector fund is a type of mutual fund or exchange-traded fund (ETF) that invests exclusively in one specific sector…

Full Definition
Mutual fund A mutual fund is a type of investment vehicle that pools money from many investors to purchase a… Net asset value (NAV) Net asset value (NAV) represents the per-share market value of a mutual fund, exchange-traded fund (ETF), or other… No-load fund A no-load fund is a type of mutual fund in which shares are sold directly to investors without… Open-end fund An open-end fund is a type of mutual fund that can issue an unlimited number of shares. The… Premium/discount to NAV Premium/discount to Net Asset Value (NAV) is a concept that applies primarily to closed-end funds and exchange-traded funds… Prospectus A prospectus is a formal legal document that describes a security offering for sale to the public. It… Sector fund A sector fund is a type of mutual fund or exchange-traded fund (ETF) that invests exclusively in one… Share class A Class A shares are a type of mutual fund share class that typically charges a front-end sales load,… Share class B Share class B is a type of mutual fund share class that typically does not charge an upfront… Share class C Share class C is a type of mutual fund share class that typically charges a level load, meaning… Share class I (institutional) Share class I (institutional) is a category of mutual fund shares designed specifically for institutional investors, such as… Target-date fund A target-date fund is a type of mutual fund or exchange-traded fund designed to simplify retirement investing for…