COMMON INVESTMENT TERMS EXPLAINED: Part 2

We’re back with another installment on terms related to mutual funds! Take a look at these, and let us know if you have any questions.

Expense Ratio: The total of a fund’s expenses, shown as a percentage of its assets. These expenses include operating expenses, salaries, and more, and they amount to most of the cost of owning shares of that fund.

Front-End Load: A fee that some funds impose at the time of purchase, in addition to the ongoing management expenses.

Hedge Fund: A private investment pool for qualified investors. Hedge funds are exempt from SEC registration. Among the various required qualifications is a significant amount of wealth; the minimum investment is typically $1 million or more.

• Hedge funds don’t have the same limitations that are placed upon mutual funds. The risk and rewards can both be very high for hedge funds.

Hybrid Fund: A mutual fund that invests in both stocks and bonds.

Thanks for reading! We’re spreading these terms out over the course of several weeks to give you plenty of time to read and digest. As always, give us a holler if you have questions or just want to chat!