Types of Mutual Funds and Fund Objectives
Chapters in this video
- 0:00 Meet the asset classes: equity, fixed-income, money market, interval
- 1:54 Money market madness: retail stable $1.00 NAV versus institutional floating NAV
- 4:41 Fund investment objectives: value, growth, balanced, sector, and geographic traps
- 6:48 Life-cycle funds and the glide path to conservative allocation
- 7:16 Rapid-fire exam recap
What this video covers
- Why interval funds are closed-end structures despite periodic repurchase offers, and why they lack daily redemption at net asset value (NAV)
- How retail money market funds target a stable $1.00 NAV through amortized cost and penny rounding, and what "breaking the buck" actually means
- Why institutional money market funds use floating NAV pricing and who qualifies as a non-natural person investor
- What the 2023 Securities and Exchange Commission (SEC) reforms changed: redemption gates removed, liquidity fees retained, and which funds face mandatory versus discretionary fees
- How to distinguish value, growth, income, balanced, and sector funds by their portfolio focus and risk profile
- Why international funds exclude United States (US) securities while global funds include both US and foreign holdings
- How target-date funds use a glide path to automatically rebalance toward conservative allocation, and why they frequently serve as qualified default investment alternatives (QDIAs)
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