Mutual Fund Software Key Terms

Key terms you'll find as you research mutual fund software

By Ann Starr

Mutual fund software can help you save time and money by giving you more flexibility in managing your mutual funds. With mutual fund software, you can manage and allocate your portfolio as well as use it to help you with trading mutual funds. It can help you identify funds that may be under performing or over performing so that you make intelligent decisions on whether to buy or sell a fund. You can also use the software to determine what signals you will need in order to determine the best time to buy or sell. As you explore the various software packages on the market, you will want to familiarize yourself with some terms.

Closed-end fund

A closed-end fund is a type of investment scheme with a limited number of shares. New shares are rarely issued once the fund is launched and are not usually redeemable for cash or securities until the fund liquidates. Mutual fund software can track and manage these types of funds.
Try: InvestorWords.com describes this type of fund.

Exchange traded fund

Exchange traded fund (ETF) is a mutual fund that trades like stock. It is composed of a group of stocks that reflect an index such as the S&P 500. An ETF's price changes throughout the day and fluctuates with supply and demand. Mutual fund software can include ETFs.
Try: See Investopedia for more information on ETF.

Automatic dividend reinvestment plan

Automatic dividend reinvestment plan can be a part of a closed-end ETF and consists of a plan to distribute dividends in additional funds shares. Mutual fund software can include automatic dividend reinvestment plans.
Try: Go to ETFConnect.com for more information on this type of plan.

Realized capital gains

Realized capital gains consist of capital gains minus capital losses divided by number of outstanding shares. Mutual fund software tracks capital gains for users.
Try: AllBusiness.com defines this term for you.

Real estate investment trust

A real estate investment trust or REIT is a tax designation for a corporation that invests in real estate and that reduces or eliminates corporate income taxes. This structure was designed to allow smaller investors to invest in real estate much as mutual funds do for stocks. Mutual fund software can include REITs.
Try: SEC has a more comprehensive definition of this term.

HOLDR

HOLDR or holding company depository receipts are exchange traded receipts that represent ownership of a set of common stocks in a sector or industry. Mutual fund software sometimes includes HOLDRs in their offerings.
Try: For more information on HOLDRs go to Farlex.