We’ve got another handful of terms that have to do with mutual funds for you today! Take a look, and let us know if you have any questions.

Stock Fund: A mutual find that primarily invests in stocks.

Total Net Assets: This is simply the total amount of assets a fund possesses minus its liabilities.

Total Return: A measure of a fund’s performance that considers all aspects of return: capital gains distributions, dividends, and changes in net asset value. The total return is assessed over a specific period of time and assumes that all dividends and capital gains distributions are reinvested.

Yield: A measure of income (dividends and interest) earned by the securities in a fund’s portfolio minus the fund’s expenses during a specified period. A fund’s yield is expressed as a percentage of the maximum offering price per share on a specified date.

12b-1 Fee: A mutual fund fee, named for the SEC rule that permits it, used to pay distribution costs. One example of these expenses is compensation to financial advisers for initial and ongoing assistance. If a fund has a 12b-1 fee, it will be disclosed in the fee table of a fund’s prospectus.

We hope you’re finding this series helpful! As always, stay tuned for more and feel free to reach out if you want to chat about your investing journey.

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