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Lingo: Stock fund vs Mutual Fund
Old 05-25-2006, 06:17 PM   #1
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Lingo: Stock fund vs Mutual Fund

Naive question:* What is the difference between a Stock Fund and a Mutual Fund?* I thought a Mutual Fund is a collection of various stocks?

This is how Fidelity describes its "International Stock Fund" :

What it is
Institutional non-U.S. stock fund, not a mutual fund.

Goal
Seeks to provide long-term growth of capital and future income by investing in companies based outside the U.S.

What it invests in
Stocks of companies outside the U.S., with an emphasis on large-capitalization companies in Europe, Canada, Australia and the Far East, which the fund manager believes to be strong, well managed, and attractively priced. The fund may invest a portion of its assets in emerging market stocks and non-EAFE stocks, including non-U.S. small-cap stocks. Foreign investments, especially those in emerging markets, involve greater risks than U.S. investments. These risks include political and economic uncertainties of foreign countries, as well as the risk of currency fluctuation.


Sounds a lot like a mutual fund to me.* What am I missing?

Thanks,
Sam
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-25-2006, 06:24 PM   #2
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Re: Lingo: Stock fund vs Mutual Fund

a stock fund is a mutual fund that holds only stocks
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-25-2006, 06:26 PM   #3
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Re: Lingo: Stock fund vs Mutual Fund

This might help:

http://www.sec.gov/answers/mutfund.htm

Quote:
A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, or other securities. Legally known as an "open-end company," a mutual fund is one of three basic types of investment company. The two other basic types are closed-end funds and Unit Investment Trusts (UITs).
(continues)

If it's not a mutual fund, maybe it's a UIT or another structure.
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-25-2006, 07:13 PM   #4
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Re: Lingo: Stock fund vs Mutual Fund

A mutual fund may include stocks, bonds or money market instraments. If it includes only stocks, it is a "stock Fund". All bonds, a "Bond Fund".
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-25-2006, 08:42 PM   #5
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Re: Lingo: Stock fund vs Mutual Fund

Fidelity doesn't list "International Stock Fund" as one of their mutual funds ...
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-26-2006, 10:11 AM   #6
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Re: Lingo: Stock fund vs Mutual Fund

Quote:
Originally Posted by lazyday
This might help:

http://www.sec.gov/answers/mutfund.htm
(continues)

If it's not a mutual fund, maybe it's a UIT or another structure.
Thanks for the link.* The following is in the above document:

Mutual funds come in many varieties. For example, there are index funds, stock funds, bond funds, money market funds, and more.

I guess, Fidelity's description is technically incorrect, since a Stock Fund is a variety of Mutual Fund.
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-26-2006, 10:13 AM   #7
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Re: Lingo: Stock fund vs Mutual Fund

Quote:
Originally Posted by d
Fidelity doesn't list "International Stock Fund" as one of their mutual funds ...
Fidelity's International Stock Fund is not available to everyone.* In this case, it is for HP 401(k) plan.
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-26-2006, 11:11 AM   #8
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Re: Lingo: Stock fund vs Mutual Fund

since it clearly states it is not a mutual fund, it is safe to assume that it is not! it might work like one, but could technically be something else. perhaps a variable annuity? check through your HP plan.
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-26-2006, 11:16 AM   #9
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Re: Lingo: Stock fund vs Mutual Fund

Perhaps the fact that its an institutional fund?

Otherwise i'm not getting the difference.
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Re: Lingo: Stock fund vs Mutual Fund
Old 05-26-2006, 11:44 AM   #10
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Re: Lingo: Stock fund vs Mutual Fund

Maybe not all funds are mutual funds, and perhaps not all stock funds are mutual funds?

Are there no securities lawyers on this forum?
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