A mutual fund custodian is a third-party financial institution that holds and protects the assets of a mutual fund. They also act as transfer agents and are required to comply with financial regulations to prevent fraud. The custodian maintains records and keeps mutual fund assets separate from other types of assets. This system acts as […]
To become a hedge fund manager, one needs a finance degree, an MBA, and a license from a regulatory organization. High school students interested in finance should take accounting classes and attend reputable universities. Internships can help secure employment and educational assistance. Hedge fund managers may need to pass tests and can advance by establishing […]
Feeder funds are commonly used in hedge fund investing, allowing investors to route their assets to a central fund. Both foreign and domestic investors can use feeder funds to invest in the same hedge fund, with the funds grouped into a master fund. This structure allows for a more efficient investment method and can help […]
Fond commun de place is a type of investment fund in French-speaking countries, functioning as a closed mutual fund. It offers a diversified global portfolio and differs from the open SICAV fund. Understanding French financial markets and investment instruments can be helpful for investors. The French phrase fond commun de place refers to a specific […]
An endowment fund is a type of charitable fund established in a trust, with contributions from investors and donors. It can be used for various purposes, and the type of fund is decided by the grantor. Rules vary depending on the jurisdiction, and some allow for the buying and selling of donations. An endowment fund […]
The Social Security Trust Fund in the US tracks earnings and is split into two funds for retirees and the disabled. It buys US Treasuries and has a surplus, but concerns about its future have led to suggestions of raising taxes or making it a real savings fund. In the United States, the Social Security […]
A pension trust fund is a pool of money from an employer and employees used to finance future payments to employees. It is governed by national laws and used for company pensions. It allows for pooled investment and protects savings, but may not have enough money to pay guaranteed pensions. A pension trust fund is […]
A fully capitalized mutual fund invests in companies based on criteria other than market capitalization size, allowing for more flexibility in investment opportunities. It does not exhibit stereotypical behavior based on company size, making historical performance a primary indicator of future success. A fully capitalized mutual fund is a fund that does not follow a […]
A dividend fund is a type of mutual fund that invests in companies that pay dividends to provide investors with a regular stream of income. This is an opposite strategy to investing in companies that reinvest profits to maximize share price. Income funds, including dividend funds, are popular in Canada. Professional finance companies manage dividend […]
A community trust fund is a non-profit organization that receives money from donors to improve a specific community. It can be structured as a traditional or non-profit trust, and wealthy donors may contribute to set up an endowment. The fund awards grants for various projects, such as education, health, and the environment, and can partner […]
Mutual funds are a diverse investment option managed by a fund manager, with various types available. Actively managed funds aim to maximize returns, while index funds follow a major index. Critics argue that few mutual funds outperform the S&P 500 index, but supporters say they offer an easy way to invest. Choosing a mutual fund […]
A small-cap mutual fund is a group of small-cap stocks with a market capitalization of $300 million to $2 billion. Small-cap funds can be designed for various investment objectives, but investing in a group of companies helps mitigate risk and offers growth potential. However, small-cap investing involves higher risk due to price volatility and a […]
Cash plus funds are low-risk portfolios with high liquidity, containing cash or cash equivalent values and short-term government debt securities. They are best suited for conservative investors and those with a short-term investment horizon. The funds also contain debt securities such as bonds, but these pay little interest compared to longer-term bonds. They are suitable […]
Senior floating rate funds invest in loans from financial institutions with floating interest rates, offering competitive interest payments and protection against default. They provide an alternative to bonds, which can be affected by rising interest rates and default risk. However, they come with high management fees and limited liquidity. A senior floating rate fund is […]
Choose the best equity index fund by considering the type of stocks preferred, evaluating historical performance, and comparing pricing structures. Look for industry-specific or broad index funds for diversification and understand the fund’s approach and risks. To choose the best equity index fund, you can start by deciding the type of stocks you prefer to […]
A permanent fund is a financial fund used to collect and disburse income to members on an ongoing basis, often used by governments to provide ongoing support to endowments or facilities. It can be used to finance government-operated efforts and provides a high level of accountability. A permanent fund is a type of financial fund […]
A mixed fund is a type of mutual fund that includes various types of assets, allowing investors to diversify their holdings without establishing multiple funds. There are no restrictions on the types of assets that can be included, and the risk value of each asset varies. Mixed funds are difficult to classify as more or […]
A mid-cap value fund invests in mid-cap stocks, typically issued by companies with a market capitalization between $2 billion and $10 billion USD, with the objective of identifying undervalued companies with growth potential. This type of mutual fund provides diversification and potential for upside while offering more stability than small-cap stocks. Investors must make a […]
Offshore hedge funds offer professional money management, operate under foreign regulations, and have lower fees. Investors must be accredited and have at least $1 million in net worth or $200,000 in annual income. They provide diversification and reduced investment costs. An offshore hedge fund is a type of investment vehicle located in a foreign country. […]
A general fund is a pool of financial resources used by non-profit entities such as governments and universities to cover operating expenses, services, and payroll. The money comes from various sources, including taxes and tuition, and is divided among different needs. It is a necessary element for many organizations. A general fund is a financial […]
