Sunday, January 2, 2011

Initial Investment

The initial investment is the first investment or deposit by an investor into a fund. Typically a fund manager will prescribe a minimum initial investment amount. The fund manager may vary the minimum investment depending on whether it is a one-off or is part of an ongoing savings program. Initial investments may incur sales charges or initial charges, or front-end loads, which are sales fees designed to compensate the sales and distribution networks for the sale of the fund product.

Synonyms: Initial, Minimum holding, Lump sum, Deposit

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