MCS 2100 Chapter Notes - Chapter 13: Mutual Fund, S&P 500 Index, Index Fund
11 Apr 2018
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Investment company: a firm that, for a management fee, invests the pooled funds of small investors in securities appropriate to its stated investment objectives. It does not ever have to buy back shares from investors so it does not have to maintain a percentage of its assets in cash. Index funds can outperform most mutual funds, as most mutual funds fail to beat the market. Just over 400 currently exist: short sell: the practice of selling a borrowed stock in the hope of covering the sale by buying it at a lower price later. T-series mutual funds: they are tax efficient when compared with regular mutual funds. Management expense ratio: the fund reports the management fee and direct costs it pays each year as a management expense ratio that relates those costs to the fund"s value. If a million fund has million in costs, its mer is 2 percent.
