Investment Terms to Know
If you have investments, you’re also receiving statements on a regular basis. Below are some common terms that you might see on your statement.

Key Terms

Contributions and Other Credits – Contributions reflect amounts paid to your retirement plan during the current report period. Contributions may reflect other credit including loan repayments or exchanges if not listed separately on your statement.

Earnings Gain/Loss – The difference between your beginning balance and your ending balance that is due to investment performance, which includes market value fluctuation and (if not shown separately) interest and dividends.

Exchanges – Selling shares of one investment and using the proceeds to buy shares of another investment.

Fees – Charges for services such as account maintenance and withdrawals that may be applied under your plan.

Market Value – The value of your investment in dollars. Market value is calculated by multiplying the share balance by the net asset value at the end of the statement period.

Net Asset Value – the value of one share of a mutual fund or other investment fund.

Share – A unit of ownership in an investment.

Vesting – The degree to which you “own” the portion of your plan benefits contributed by your company. Your own contributions are always 100% vested.

Fund Category Descriptions

Asset Allocation Portfolio – This seeks to provide a simple, one-step approach to investing in a diversified portfolio targeted to your investment goals and risk tolerance.

Growth Funds – These seek to maximize the value of your savings over time by investing in the stocks of companies that have a strong potential for providing above-average growth.

Blend Funds – These seek to increase the value of your savings over time by investing in a combination of stocks of companies that have the potential for strong earnings growth and stocks of companies that are priced below their expected long-term worth.

Value Funds - These seek to increase the value of your savings over time by investing in undervalued, or attractively priced, stocks of well-established companies.

Income Funds – These seeks to provide a steady stream of income (which is reinvested in your account) and in some cases a small amount of growth, by investing in bonds issued by governments and corporations.

Capital Preservation Funds – These seek to offer price stability and a steady stream of income (which is reinvested in your account) by investing in short-term bonds or contract issued by creditworthy companies, financial institutions, and government entities.
 

 Article provided by CU Village.com through its Financial Resource Center content product.