Financial Services _Çô Client Services RFC126 Chapter Notes - Chapter 8: Money Market Fund, Mutual Fund, Interim Management

• School: Seneca College
• Department: Financial Services _Çô Client Services
• Course: Financial Services _Çô Client Services RFC126
• Professor: marie

Document Summary

Requires disclosure of fees and expenses and the impact on mer . Management expense ratio components: management fee, trailer fees, operating expenses, interest charges and taxes. Sum that the mutual fund pays the investment fund manager for o. Represent 40% of mer for load paying equity funds . Incentive for dealing reps and mfds to service clients after sale . Paid (cid:271)y the i(cid:374)(cid:448)est(cid:373)e(cid:374)t fu(cid:374)d (cid:373)a(cid:374)ager"s (cid:373)a(cid:374)age(cid:373)e(cid:374)t fees to the mfd . Mfd pays portion to dealing rep servicing the client . To discourage early trading, fund managers charge a fee for selling or switching between 30 to 90 days after purchase . Front-end charge may be good for short-term investment since it is less than a deferred charge . Deferred charge is good for long-term investment since it decreases to zero eventually . 0-9% of the purchase paid at time of the purchase . Purchase price per share = navpu / (1-front-end sales charge) .