Mutual Funds

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Mutual Funds

• Open-end Investment Company

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Advantages

• Professional Management
• Diversification
• Liquidity

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Investors
Redeemed Shares

ABC Funds
New Shares

Investors
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Fund Objectives

• Income
• Growth
• Capital Preservation

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Structure

• Board of Directors
• Investment Advisor
• Custodian
• Transfer Agent
• Underwriter
• Shareholders

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Pricing

• NAV
• No-Load
• Load

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Load Funds

• Class A
• Class B
• Class C

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A Shares

• Breakpoints
• Letter of Intent
• Rights of Accumulation

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Taxation

• Income Distributions
• Capital Gain Distributions
• Sale of Shares

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Comparing Funds

• Objectives
• Investment Policies
• Purchase Requirements
• Sales Charges
• Shareholder Privileges
• Quality of Management

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Types of Funds

• Money Market
• Income
• Growth Income
• Balanced
• Growth
• Conservative
• Aggressive

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Types of Funds

• Index
• Specialized
• International

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Shareholder Privileges

• Systematic W/D
• Auto Reinvestment
• Exchange Privileges

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Quality of Management

• Experience
• Past Performance
• Yield Total Return
• Expense Ratio
• Turnover
• Asset Size

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Performance Timeframes

• 12 Months
• 5 Years
• 10 Years
• From Date of Inception of Fund

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Sources of Info

• Magazines
• Advisory Services
• Morningstar