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Glossary

At Ignite Financial, we take financial planning seriously, but we also believe a sense of humor can make learning a bit more fun. Hover over each term to see our tongue-in-cheek take on these common financial concepts.

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12b-1 Fee
A 12b-1 fee is an annual marketing or distribution fee charged by some mutual funds, usually as part of their expense ratio. It is meant to cover advertising, broker commissions, and other costs related to selling the fund, typically ranging from 0.25% to 1% of assets under management.
Active Management
A strategy where fund managers try to outperform the market by picking stocks, timing trades, and making investment decisions based on research, forecasts, and analysis. It often comes with higher fees and the promise (but not the guarantee) of beating passive index funds.
12b-1 Fee
A 12b-1 fee is an annual marketing or distribution fee charged by some mutual funds, usually as part of their expense ratio. It is meant to cover advertising, broker commissions, and other costs related to selling the fund, typically ranging from 0.25% to 1% of assets under management.
Active Management
A strategy where fund managers try to outperform the market by picking stocks, timing trades, and making investment decisions based on research, forecasts, and analysis. It often comes with higher fees and the promise (but not the guarantee) of beating passive index funds.
Bond
A bond is a loan you give to a government or company in exchange for periodic interest payments and the return of your money at a set date. It's considered a safer investment than stocks but still carries risks, like inflation eating away at its value or the issuer failing to pay you back.
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