Capped Fund

Filed Under » , ,
Dictionary Says

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 Says

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.

Articles Of Interest

  1.

    How To Pick A Good Mutual Fund

    Learn how to evaluate mutual funds and find the right one for you.

  2. Will A New Fund Manager Cost You?

    Learn how a change in leadership could mean more taxes for you.

  3. The Advantages Of Mutual Funds

    Learn how to get diversification, liquidity and professional management at an affordable price.

  4. 3 Alternative Ways To Assess Your Investment Manager

    Find out whether your funds are being managed according to your goals.

  5. Mutual Funds Are Awesome - Except When They're Not

    This investment is very popular, but that doesn't mean it comes without risk.

  6. Introduction To Treasury Inflation-Protected Securities (TIPS)

    If you want to protect your portfolio from inflation, all you need are a few TIPS.

  7. 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.

  8. 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 ...

  9. A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.

  10. How Risk Free Is The Risk-Free Rate Of Return?

    This rate is rarely questioned - unless the economy falls into disarray.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center