Mutual Fund - Fund operated by an investment company that raises money from shareholders to invest in securities according to a prescribed objective. Mutual funds have become the most popular method of investing for Americans. NAV is calculated once a day, based on the closing market price for each security in the fund's portfolio. Net Realized Capital Gain - Capital gains available to distribute to mutual fund shareholders after all capital losses are deducted. Virtually unknown some 20 years ago, no -load funds have become one of the most popular ways to invest.
Most mutual funds are open -end funds.
Payable Date - Date on which a mutual fund pays its distributions to shareholders. Portfolio - Generic term describing the collective securities holdings of an individual, group, institution or mutual fund. Portfolio Turnover - Rate of buying and selling securities in a portfolio. A fund that changes securities frequently is said to have a high portfolio turnover. Prospectus - Legal document providing detailed information such as the fund's investment objectives and policies, services, investment restrictions, officers and directors, how shares are bought and redeemed, fund fees and other charges, and the fund's financial statements.