CDAE 158 Lecture Notes - Lecture 21: Mutual Fund, S&P 500 Index, Target Date Fund

• School: University of Vermont
• Department: Cmty Dev & Apld Econ
• Course: CDAE 158
• Professor: Fritz

Document Summary

Pools the money of many investors- its shareholders- to invest in a. Shares in the fund are issued by an investment company only when the fund is organized. After all original shares are sold, you can purchase shares only from an investor who is willing to sell. Etf funds generally invest in the stocks or securities contained in a specific stock or securities index. Not actively managed by a portfolio manager as etfs tend to mirror the performance of the index. Shares are issued and redeemed by the investment company at the request of investors. Investors can buy and sell shares at the net asset value (nav) Referred to as a b fund or a back-end fund. Generally, deferred charge declines until there is no withdrawal charge if you own the shares in the fund for more than five years. Annual management fees range between . 25 and 1. 5% of the fund"s asset value.