ECON 132A Lecture Notes - Lecture 4: Mutual Fund, Mutual Fund Fees And Expenses, Issued Shares
12 Apr 2016
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04/05/2016 (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) Quiz: chapter 22, 1, 2, 3, 4 only what we cover in class. Open ended: mutual fund that issues or redeems shares at net value: number of shares fluctuate, value is based upon net asset value, value of all investments divided by number of shares. Each share is worth so nav = : drawback is that you have to wait till day closes. Wanting to invest in a commercial office building. Pool your money with other people and estate. Able to invest indirectly in real estate. Financial asset (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) Operating expenses: costs incurred by mutual fund in operating portfolio. Front-end load: commission or sales charge paid when purchasing shares. Back-end load: exit fee incurred when selling shares. 12b-1 charges: annual fees charged by mutual fund to pay for marketing/distribution costs. Funds with high expenses tend to be poorer performers.
