mutual fund. 1. An investment company that invests its shareholders’ money in a usu.
diversified selection of securities. — Often shortened to fund. 2. Loosely, a share in such a company.
balanced fund.A mutual fund that maintains a balanced investment in stocks and bonds,
investing a certain percentage in senior securities.
bond fund.A mutual fund that invests primarily in specialized corporate bonds or municipal
closed-end fund.A mutual fund having a fixed number of shares that are traded on a major
securities exchange or an over-the-counter market.
common-stock fund.A mutual fund that invests only in common stock.
dual fund.A closed-end mutual fund that invests in two classes of stock — stock that pays dividends and stock that increases in investment value without dividends. • A dual fund combines characteristics of an income fund and a growth fund. — Also termed dual-purpose fund; leverage fund; split fund.
fully managed fund.A mutual fund whose policy allows reasonable discretion in trading
securities in combination or quantity.
global fund.A mutual fund that invests in stocks and bonds throughout the world, including
the U.S. — Also termed world fund. Cf. single-country fund; international fund.
growth fund.A mutual fund that typically invests in well-established companies whose earnings are expected to increase. • Growth funds usu. pay small dividends but offer the potential for large share-price increases.
hedge fund.See HEDGE FUND.
income fund.A mutual fund that typically invests in securities that consistently produce a
steady income, such as bonds or dividend-paying stocks.
index fund.A mutual fund that invests in the stock of companies constituting a specific
market index, such as Standard & Poor’s 500 stocks, and thereby tracks the stock average.
international fund.A mutual fund that invests in stocks and bonds of companies outside the U.S., but not those within. Cf. global fund; single-country fund.
leverage fund.See dual fund.
load fund.A mutual fund that charges a commission, usu. ranging from 4 to 9%, either when
shares are purchased (a front-end load) or when they are redeemed (a back-end load).
money-market fund.A mutual fund that invests in low-risk government securities and
no-load fund.A mutual fund that does not charge any sales commission (although it may
charge fees to cover operating costs).
open-end fund.A mutual fund that continually offers new shares and buys back existing shares on demand. • An open-end fund will continue to grow as more shareholders invest because it does not have a fixed number of shares outstanding.
performance fund.A mutual fund characterized by an aggressive purchase of stocks expected
to show near-term growth.
regional fund.A mutual fund that concentrates its investments in a specific geographic area or
a particular economic area. single-country fund.A mutual fund that invests in an individual nation outside the U.S. Cf.
global fund; international fund.
split fund.See dual fund. utility fund.A mutual fund that invests only in public-utility securities.
value fund.A mutual fund that invests in stocks that its manager believes to be priced below
their true market value.
vulture fund.An investment company that purchases bankrupt or insolvent companies to
reorganize them in hopes of reselling them at a profit.
world fund.See global fund.
[Blacks Law 8th]