A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Management FeeThe charge a fund or advisor collects for managing your investments, often a yearly percentage of your balance.
- Actively Managed FundA fund where managers pick investments trying to beat the market, usually charging higher fees than index funds.
- Mutual FundA pooled investment where many people's money is combined and managed together to buy a mix of stocks or bonds.
- Robo-AdvisorAn online service that builds and manages a diversified portfolio for you automatically using software.
- Expense RatioThe yearly fee a fund charges, shown as a percentage of your investment, that covers its operating costs.
- PortfolioThe full collection of investments you own, such as stocks, bonds, and funds held across your accounts.
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Plain-English education — not personalized legal, tax, or investment advice.