No Transaction Fee Mutual Fund
- No Transaction Fee Mutual Fund
- A mutual fund that is offered to investors by a brokerage firm without any form of commission charged for the transaction. This structure is advantageous to the investor because it allows him or her to purchase the mutual fund without incurring an up-front commission fee on the trade. For investors with a small amount of investment capital, this can be a significant advantage.
Also referred to as an "NTF mutual fund".
Brokers are usually able to offer NTF mutual funds to their clients because the mutual fund companies that run the funds step in and compensate the brokers for their forgone commission fees. The typical arrangement is that the mutual fund company pays the brokerage firm marketing fees when an investor buys into the fund through a broker, instead of buying directly from the fund.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Mutual fund fees and expenses — are charges that may be incurred by investors who hold mutual funds. Running a mutual fund involves costs, including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to … Wikipedia
Mutual fund — This article is about mutual funds in the United States. For other forms of mutual investment, see Collective investment scheme. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors… … Wikipedia
Mutual Fund Timing — A legal, but frowned upon practice, whereby traders attempt to gain short term profits from buying and selling mutual funds to benefit from the differences between the daily closing prices. Don t confuse market timing with mutual fund timing.… … Investment dictionary
fee — A fixed amount or a percentage of an underwriting or principal. Bloomberg Financial Dictionary * * * fee fee [fiː] noun 1. [countable] COMMERCE an amount of money paid to a professional person or organization for their services: • If you want… … Financial and business terms
Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… … Wikipedia
Exchange-traded fund — An exchange traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.[1] An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs… … Wikipedia
Redemption Fee — A fee collected by an investment company from traders practicing mutual fund timing. This stiff penalty is used to discourage short term, in and out trading of mutual fund shares. Generally, the fee is in effect for a holding period from 30 days… … Investment dictionary
No-Load Fund — A mutual fund in which shares are sold without a commission or sales charge. The reason for this is that the shares are distributed directly by the investment company, instead of going through a secondary party. This is the opposite of a load… … Investment dictionary
No-Fee ETF — An exchange traded fund (ETF) that a broker does not charge a commission or fee to be traded. Most ETFs require an investor to pay each time a buy or sell order is executed, which increases the cost associated with placing frequent trades. A no… … Investment dictionary
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
