An asset management company (AMC) invests pooled client funds in various securities and assets.
AMCs range in size and operations, from personal money managers who manage individual high net worth (HNW) accounts and have several hundred million dollars in AUM, to giant investment companies that offer ETFs and mutual funds and have trillions. in AUM.
AMC managers are compensated in the form of a commission, usually a percentage of the client’s assets under management.
A floating rate fund is a fund that invests in financial instruments with variable or floating interest rates. A floating rate fund invests in bonds and debt instruments, the interest payments on which fluctuate depending on the level of the base interest rate.
Go-go fund - a mutual fund with an investment strategy focused on growth stocks and other high-risk securities.
These funds were at their peak in the 1960s, attracting investors with the promise of unusually high market returns.
A Growth and Income Fund is a mutual fund or ETF strategy that seeks to generate a total return for investors, including capital gains and current income.
Lifecycle funds are asset allocation funds in which the share of each asset class automatically adjusts to reduce risk as the desired retirement date approaches.
Market neutral refers to a type of investment strategy used by investment managers who seek to profit from both rising and falling prices in financial markets.
Market timing is the act of moving investment money into or out of the financial market - or switching funds between asset classes - based on predictive methods.