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
- Mutual FundA pooled investment where many people's money is combined and managed together to buy a mix of stocks or bonds.
- ETF (Exchange-Traded Fund)A basket of investments that trades like a single stock, letting you own many holdings at once with one purchase.
- Index FundA fund that owns a broad slice of the market at low cost — the backbone of most investing.
- Management FeeThe charge a fund or advisor collects for managing your investments, often a yearly percentage of your balance.
- Load FundA mutual fund that charges a sales fee when you buy or sell, reducing the amount that goes to work for you.
- NAV (Net Asset Value)The per-share value of a fund, calculated by dividing its total holdings' value by the number of shares.
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Plain-English education — not personalized legal, tax, or investment advice.