The percentage of the fund’s assets invested in short-term obligations, usually less than 90 days, that provide a return in the form of interest payments. This type of investment generally offers a low return compared to other investments but has a low risk level.

See Asset Allocation.

Cash Investment Plan

A plan where investors can send various amounts of cash at specific times.


Identifies funds according to their actual investment styles as measured by their portfolio holdings. This categorization allows investors to spread their money around in a mix of funds with a variety of risk and return characteristics.

Closed End Fund

They are launched through an IPO (see IPO) in order to raise money and then trade in the open market just like a stock or an ETF. They only issue a set amount of shares and, although their value is also based on the NAV (see NAV), the actual price of the fund is affected by supply and demand, allowing it to trade at prices above or below its real value. (Also see Open End Fund).

Closing Price

The price of a fund at which it traded on a given trading day. Closing price represents the latest valuation of a fund until trading commences again the next trading day.

Common Stock

A security that represents ownership in a corporation. Common stock holders have the right to vote on corporate policies and elect a board of directors, but they are at the bottom of the priority ladder. In the event of bankruptcy they get paid with whatever is left after secured creditors and the preferred stock holders are paid (see Preferred Stock).


The percentage of the fund’s assets invested convertible securities. Convertible securities are bonds or preferred shares that can be converted into common stock, generally adding value for the security holder.

See Asset Allocation.

Weiss Ratings