Often investors can choose an option in which money is automatically withdrawn from their banking account and invested into the mutual fund at a specified time of the month. E Equity - A stock or the interest and capital gains received from the ownership of a stock. Execution - The term used to describe the completion of a transaction in which a stock is sold by a broker and purchased by a shareholder. Expenses - Fund shareholders pay expenses that go towards the operation and management of the fund. In comparison, mutual funds are much less than that of a broker.
Many investors choose to compare expenses as a factor in choosing which fund to invest in.
Often shareholders have the option to easily exchange shares between different funds in the same family over the phone with no fee. This is a practice commonly used by fund managers of aggressive growth mutual funds. H Hedging - A strategy used in conjunction with the buying and selling of futures, in which a manager of a mutual fund may purchase a security with the belief that the price will go up, and that the shares may be sold at a profit. Index - An average of stock prices, or mutual funds, used for the purposes of comparing. Index fund - A fund that specializes in the purchase of securities that match or represent a specific index.