1. Mutual Funds and Other Investment Companies Chapter 4

2. Administration & record keeping Diversification & divisibility Professional management Reduced transaction costs Services of Investment Companies

3. Used as a basis for valuation of investment company shares - Selling new shares - Redeeming existing shares Calculation Market Value of Assets - Liabilities Shares Outstanding Net Asset Value

4. Unit Trusts Managed Investment Companies - Open-End - Closed-End Other investment organizations - Commingled funds - REITs Types of Investment Organizations

5. Shares Outstanding Closed-end: no change unless new stock is offered Open-end: changes when new shares are sold or old shares are redeemed Pricing Open-end: Net Asset Value(NAV) Closed-end: Premium or discount to NAV Open-End and Closed- End Funds: Key Differences

6. Money Market Fixed Income Equity Balance & Income Asset Allocation Indexed Specialized Sector Investment Policies

7. Fee Structure - Front-end load - Back-end load Operating expenses 12 b-1 charges - distribution costs paid by the fund - Alternative to a load Fees and performance Costs of Investing in Mutual Funds

8. A First Look at Fund Performance Benchmark: Wilshire 5000 Results - Most funds underperform - Not fair comparison because of costs Adjusted Benchmark: Wilshire 5000 with passive management costs considered - The majority of funds still underperform

9. Consistency of Fund Performance Do some mutual funds consistently outperform? Evidence suggests that some funds show consistent stronger performance - Depends on measurement interval - Depends on time period Evidence shows consistent poor performance

10. Wiesenberger’s Investment Companies Morningstar Investment Company Institute Popular press Investment services Sources of Information on Mutual Funds