There are important personal and tax considerations in estate planning. Exchange Privilege A fund option enabling shareholders to transfer their investments from one fund to another within the same fund family as their needs or objectives change. Family of Funds A group of mutual funds, each typically with its own investment objective, managed and distributed by the same company. A fiduciary has legal responsibility for making financial decisions that affect others. Fluctuation Sometimes called volatility, fluctuation is the degree to which an investment's value or returns move up or down over time.
Income is earned on a fund's investment portfolio after deducting operating expenses.
Index Indexes are groupings of investments designed to represent different investment markets or sectors of markets. They are useful in measuring the progress or retreat of markets. Most mutual funds compare themselves to the market index that most closely reflects their investment philosophy. Individual retirement accounts, IRAs, offer investors several different types of tax advantages. Education IRAs offer tax-free growth of money if used exclusively for education expenses.