Financial Vocabulary

#201

Mutual fund

Example sentences

1. She invests $100 each month in a mutual fund.
2. The mutual fund holds shares from many companies.
3. A professional manager runs the mutual fund.

#

#202

Exchange-traded fund

Example sentences

1. He bought an exchange-traded fund through his broker.
2. An exchange-traded fund trades like a stock.
3. The exchange-traded fund follows a market index.

#

#203

Index fund

Example sentences

1. She chose an index fund with low fees.
2. The index fund follows the S&P 500.
3. An index fund usually uses passive investing.

#

#204

Money market fund

Example sentences

1. He keeps short-term cash in a money market fund.
2. A money market fund invests in short-term debt.
3. The money market fund offered a steady yield.

#

#205

Hedge fund

Example sentences

1. The hedge fund uses complex trading strategies.
2. Only certain investors can join the hedge fund.
3. The hedge fund earned money when the market fell.

#

#206

Private equity fund

Example sentences

1. The private equity fund bought a manufacturing company.
2. A private equity fund invests in companies outside public markets.
3. The private equity fund plans to improve the business.

#

#207

Venture capital fund

Example sentences

1. The venture capital fund invested in a new software company.
2. A venture capital fund supports young businesses.
3. The startup asked the venture capital fund for money.

#

#208

Fund manager

Example sentences

1. The fund manager selected new investments.
2. A fund manager watches risk and performance.
3. Investors read a letter from the fund manager.

#

#209

Asset management

Example sentences

1. The bank offers asset management to wealthy clients.
2. Asset management includes choosing and watching investments.
3. She works for an asset management company.

#

#210

Assets under management

Example sentences

1. The fund has $500 million in assets under management.
2. Assets under management grew after new clients joined.
3. The report lists total assets under management.

#

#211

Portfolio

Example sentences

1. Her portfolio includes stocks, bonds, and cash.
2. The portfolio gained 6% this year.
3. He reviews his portfolio every three months.

#

#212

Asset allocation

Example sentences

1. Her asset allocation is 60% stocks and 40% bonds.
2. Asset allocation should match an investor's goals.
3. The adviser changed the asset allocation as retirement came closer.

#

#213

Diversification

Example sentences

1. Diversification reduced the risk of one company failing.
2. She achieved diversification by buying different assets.
3. Good diversification spreads money across several investments.

#

#214

Rebalancing

Example sentences

1. He is rebalancing his portfolio back to its target.
2. Rebalancing may involve selling some stocks and buying bonds.
3. The adviser recommends rebalancing once a year.

#

#215

Benchmark

Example sentences

1. The fund beat its benchmark this year.
2. The S&P 500 is the fund's benchmark.
3. Investors compare performance with a suitable benchmark.

#

#216

Market index

Example sentences

1. The market index rose by 2% today.
2. A market index tracks a group of securities.
3. The fund tries to follow the market index.

#

#217

Passive investing

Example sentences

1. She uses passive investing through an index fund.
2. Passive investing usually involves less trading.
3. Low fees are a common benefit of passive investing.

#

#218

Active investing

Example sentences

1. The manager uses active investing to select stocks.
2. Active investing tries to beat the market.
3. Active investing may have higher costs.

#

#219

Expense ratio

Example sentences

1. The fund has an expense ratio of 0.20%.
2. A lower expense ratio leaves more money for investors.
3. She compared the expense ratio of several funds.

#

#220

Management fee

Example sentences

1. The fund charges a 1% management fee.
2. The management fee pays for professional investment services.
3. He chose a fund with a lower management fee.

#