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Back-end Load A fee assessed when certain mutual fund shares are sold. Also called a redemption fee or a contingent deferred sales charge (CDSC). Some funds gradually phase out back-end loads over several years, so that if a shareholder stays invested in the fund long enough, they pay a reduced fee or none at all. |
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Balanced Fund Funds which blend investments in stocks and bonds are commonly known as balanced funds. A balanced fund typically have the flexibility to change the investment mix based on then-current economic conditions. The returns for balanced funds have typically been greater than those of bond and money market funds, but lower than those of pure stock funds. Investing in both types of securities means the value of principal should fluctuate less than it would in a stock or bond fund alone. |
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Basis Point One hundredth of one percent in the yield of an investment. |
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Beta The beta coefficient is a means of measuring the volatility of a stock or stock portfolio in comparison with the market as a whole. A beta of 1.0 indicates that the portfolio's price will move with the market. A beta higher than 1.0 indicates that the portfolio's price will be more volatile than the market. A beta of less than 1.0 indicates that the portfolio's price will be less volatile than the market. |
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Bid or Sell Price The price at which a mutual fund’s shares are redeemed, or bought back, by the fund. The bid price is the current NAV per share, less any redemption fee or back-end load. |
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Blended Index The Blended Index is a customized index composed of 60% in the S&P 500 Index and 40% in the Lehman Brothers Intermediate Government/Credit Index. The S&P 500 Index is an unmanaged market index representing a broad market-weighted average of U.S. blue-chip companies. The Lehman Brothers Intermediate Government/Credit Index is an unmanaged market index that includes treasuries, Government-related issues and corporate bonds. |
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Bond Also known as a fixed-income security, a bond is an agreement to repay the investor the amount loaned (the principal) on a specific date and to make periodic fixed payments (interest) to the investor until the loan is repaid. |
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Bond Fund A mutual fund that invests in bonds; generally, corporate, municipal, or U.S. Government debt obligations. Bond funds typically emphasize income as an investment objective rather than growth. |
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Broker-Dealer A firm that sells mutual funds or other securities to investors. |
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