A BNY MELLON COMPANY

Insights & Ideas

Glossary | 0-9

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z | 0-9

1-Day Yield/Daily Yield: A per share income earnings annualized (daily mill rate x 365 days divided by the NAV).

Sometimes yield is referred to as the "rate" or the "return" that a fund is earning — all are correct, but do not confuse yield with total return.

7-Day Yield (simple yield): Reflects the average of all the rates on the securities in a portfolio over a 7-day period and annualizes the result. The result is then converted into a percent (multiplied by 100). The 7-day yield does not take into account the effects of compounding. This is why money market funds also report effective yield.

30-Day Yield (simple yield): Reflects the interest and dividend income a fund earned from its portfolio over the last 30-day period divided by the average number of fund shares entitled to receive dividends. This figure is based on the net asset value per share on the thirteenth day of the period, annualized and converted to a percent. This yield assumes that income earned on the principal is not reinvested.

12b-1 Mutual Fund: Fund which charges a fee to clients for some of its promotion expenses.

403(b) Plans: A salary-reduction program available to employees of certain charitable organizations and public school systems.

401(k) Plans: A popular retirement plan available through many employers enabling employees to make pre-tax contributions through salary reductions. Employers often make matching contributions on behalf of their employees.

1035 Exchange: Direct transfer of an annuity to Dreyfus from an account with another company.