Capped Fund
Definition of 'Capped Fund'A mutual fund that has a limited amount of operating expenses that can be charged annually to shareholders. The limit is expressed as a ratio of total operating expenses divided by the fund's average net assets. The fund's investment advisor will disclose the expense limit in the prospectus. |
|
Investopedia explains 'Capped Fund'Limiting the expense ratio of a mutual fund provides investors with a fee ceiling. While the cap provides investors with the highest fee to expect, the cap can also be removed by the fund manager. The fund's prospectus will often state when the expense limit will expire or change. The expense limit can be measured with either the before or the after reimbursement expense ratios. |
Related Definitions
Articles Of Interest
-
How To Pick A Good Mutual Fund
Learn how to evaluate mutual funds and find the right one for you. -
Will A New Fund Manager Cost You?
Learn how a change in leadership could mean more taxes for you. -
The Advantages Of Mutual Funds
Learn how to get diversification, liquidity and professional management at an affordable price. -
3 Alternative Ways To Assess Your Investment Manager
Find out whether your funds are being managed according to your goals. -
Mutual Funds Are Awesome - Except When They're Not
This investment is very popular, but that doesn't mean it comes without risk. -
Introduction To Treasury Inflation-Protected Securities (TIPS)
If you want to protect your portfolio from inflation, all you need are a few TIPS. -
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
How To Cut Your Mutual Fund Fees By Up To 90%
Most mutual funds don’t come close to beating the indexes they’re compared against. And yet they carry steep fees for active management. Find out how a little research and effort can cut your ... -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio. -
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray.
Free Annual Reports