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Glossary of Financial Terms

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Fund performance
Reflects a fund's investment results.

Global fund
Invest in both U.S. and foreign securities.

Growth Fund
A fund that focuses on capital appreciation rather than income as its investment goal.

Historical yield
Refers to an investment's actual return from income over a given period measured from the beginning of the period.

Earnings, generally from interest or dividends, that are credited or paid to an investor.

Income dividend
Payments of dividends, interest, or short-term capital gains earned by a fund's portfolio of securities after deducting operating expenses. The prospectus describes how often a fund pays dividends.

Income Fund
A fund that specializes in investments that can produce current income and dividends.

A benchmark, such as the Standard & Poor's 500 Composite Index, against which to measure performance. It is not possible to invest directly in an index.

International fund
Invest only in foreign securities, none from the United States.

Investment Objective
The stated goal of a mutual fund. It helps determine the types of securities in which a portfolio invests, the expected returns, and the level of risk.

Investment Position
An investor's stake in a particular security or market.

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