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7: 3 Mutual Funds & DPPs > 1 Mutual Funds > Flashcards

1 Mutual Funds Flashcards

1
Q

NAV

value of

A

Net Asset Value

1 share in portfolio

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2
Q

Public Offering Price (POP)

A

= Net Asset Value (NAV) + Sales Charge

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3
Q

Management Fee

who gets

what form

A

protfolio mgr / investment advisor

sales & 12b-1 - promotion

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4
Q

Shares

A | B | C

Issue

Load

12b-1

A
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5
Q

No Load

= what bps

A

12b-1 , 25 bps

ave net assets

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6
Q

Expense Ratio

A
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7
Q

UIT

structure

voting

redemption

selection & management

A
  • trust or custodian
  • no BOD, no voting
  • redeemable securities by trust
  • select but do not actively manage “supervised and unmanaged”
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8
Q

EFT

Exchange Traded Funds

  1. organization
  2. trade timing
  3. fees
  4. purchasing
A
  1. organized as UIT
  2. trade intra day like stock
  3. commission, no sales charge
  4. shares bought on margin, sold short
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9
Q

EFT Cont.

  1. expense ratio
  2. portofolio
  3. cost savings
  4. indexes
  5. taxes
A
  1. low expense ratio
  2. diversification
  3. low cost - bulk purchase
  4. indexes included
  5. tax advantages
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10
Q

Structured Products

  1. HODRs - who, timing of trade, basket of
  2. ETN
  3. OTC
  4. Sovern Debit
  5. SPDRs
A

Merrill Lynch - traded daily

basket of stocks in sector

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11
Q

Structured Products

  1. HODRs
  2. ETN - who, secured?, performance basis, insurance?
  3. OTC
  4. Sovern Debit
  5. SPDRs
A

Barclays

unsecured debt

performance based upon mkt index minus fees

no coupon pmts or principal protection

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12
Q

Structured Products

  1. HODRs
  2. ETN
  3. OTC
  4. Sovern Debit
  5. SPDRs
A

exotic options

flexible

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13
Q

Structured Products

  1. HODRs
  2. ETN
  3. OTC
  4. Sovern Debt
  5. SPDRs
A

debt issued by ntl govt in goreign securities

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14
Q

Structured Products

  1. HODRs
  2. ETN
  3. OTC
  4. Sovern Debit
  5. SPDRs- based on, trade timine, margin?
A

S&P equity index

interday

margin trades

short selling

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15
Q

growth

A

div reinvested for development

generate cap gains opposed to income

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16
Q

income

A

co w/ long history of DIV pmts

utility

blue chips

perferred stock

17
Q

market capitalization

formula

A

tot val of outstanding shares

= # shares outstanding x today’s closing price

18
Q

Mutual Funds

Risk vs. Return

High to Low

A

High Risk - High Ret

Small Cap

  • Equity Funds

Mid Cap

  • Balanced Funds
  • Fixed Income

Large Cap

-Money Mkt

19
Q

Open End

Max Sales Charge =

A

8.5% of offering

20
Q

What security gives you protection from inflation?

A

common stock

mutual fund with common stock in it

21
Q

Letter of Intent

Letter to invest 25k

Orig invest 13k

appreciation to 17k

what dep needed to complete ltr?

A

12 k

full amt paid to complete does not include appreciation

7: 3 Mutual Funds & DPPs (5 decks)

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