Frequently Asked Questions
Find answers to your most common mutual fund questions
We are providing this information only as a reference to current and prospective shareholders and should not be relied on solely to make a decision whether or not to invest in any mutual fund. Please refer to the Buffalo Funds prospectus for additional information.
If you have further questions, call us at (800) 49-BUFFALO.
What is a mutual fund? ▼
A mutual fund is an SEC-registered open-end investment company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined securities and assets the mutual fund owns are known as its portfolio, which is managed by an SEC-registered investment adviser. Each mutual fund share represents an investor’s proportionate ownership of the mutual fund’s portfolio and the income the portfolio generates. The Securities and Exchange Commission (SEC) does not approve, endorse, nor indemnify any security.
What are some of the potential benefits of investing in a mutual fund? ▼
Professional Management – Most funds are managed by investment advisers who are registered with the SEC.
Diversification – Spreading investments across a wide range of companies or industry sectors can help lower risk if a company or sector fails. Many investors find it less expensive to achieve such diversification through ownership of certain mutual funds than through ownership of individual stocks or bonds. Diversification does not assure a profit, nor does it protect against a loss in a declining market.
Low Minimum Investment – Some mutual funds accommodate investors who don’t have a lot of money to invest by setting relatively low dollar amounts for the initial purchase, subsequent monthly purchases, or both.
Liquidity and Trading Convenience – Mutual fund investors can readily redeem their shares at the next calculated NAV, minus any fees and charges assessed on redemption, on any business day. Mutual funds must send investors payment for the shares within seven days, but many funds provide payment sooner.
What are some of the disadvantages of investing in a mutual fund? ▼
Costs Despite Negative Returns – Investors in some mutual funds must pay sales charges, annual fees, management fees and other expenses, regardless of how the mutual fund performs. Investors may also have to pay taxes on any capital gains distribution they receive.
Lack of Control – Investors in mutual funds cannot directly influence which securities are included in the funds’ portfolios.
Potential Price Uncertainty – With an individual stock an investor can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling a broker. By contrast, with a mutual fund, the price at which an investor purchases or redeems shares will depend on the fund’s NAV, which the fund might not calculate until many hours after an order has been placed.
Are there any risks involved in investing in mutual funds? ▼
The Buffalo Funds cannot guarantee that they will achieve their investment objectives. As with any mutual fund, the value of a fund’s investments may fluctuate. If the value of a fund’s investments decreases, the value of the fund’s shares will also decrease and you may lose money. Please refer to our prospectus for more detailed information on risks related to the Buffalo Funds.
What are the different types of mutual funds? ▼
Open-end funds (like all Buffalo Funds) are the most common type of mutual fund. Most open-end funds sell shares to the public every day, priced at NAV. A professional investment manager oversees the portfolio, buying and selling securities as appropriate. The total investment in the fund will vary based on share purchases, share redemptions and fluctuation in market valuation. There is no legal limit on the number of shares that can be issued.
Closed-end funds generally issue shares to the public only once, when they are created through an initial public offering. Their shares are then listed for trading on a stock exchange. Investors who no longer wish to invest in the fund cannot sell their shares back to the fund (as they can with an open-end fund). Instead, they must sell their shares to another investor in the market. A professional investment manager oversees the portfolio, buying and selling securities as appropriate.
Exchange-traded funds combine characteristics of both closed-end funds and open-end funds. ETFs are traded throughout the day on a stock exchange. An arbitrage mechanism is used to keep the trading price close to net asset value of the ETF holdings.
What are the fees to invest in a mutual fund? ▼
Mutual funds can have a variety of transaction fees (purchase, redemption, exchange) and periodic fees (management, account, 12b-1 distribution and service) as well as other operating expenses and loads. A load is a type of commission, charged to the investor at time of purchase (front-end load), time of sale (back-end load), or a mix of both. All Buffalo Funds are no-load, however management and other expenses still apply. Please refer to the prospectus for further details.
What are the most common types of share classes? ▼
Class A shares typically impose a front-end sales load. They also tend to have a lower 12b-1 fee and lower annual expenses than other mutual fund share classes.
Class B shares typically do not have a front-end sales load. Instead, they may impose a contingent deferred sales load and a 12b-1 fee (along with other annual expenses).
Class C shares might have a 12b-1 fee, other annual expenses, and either a front- or back-end sales load. But the front- or back-end load for Class C shares tends to be lower than for Class A or Class B shares, respectively.
Class I shares are usually subject to very high minimum investment requirements and are, therefore, known as “institutional” shares. They are no-load shares.
Class R shares are usually for use in retirement plans such as 401(k) plans. They typically do not charge loads, but do charge a small distribution and services fee.
What is the difference between active and passive management? ▼
An actively managed fund seeks to outperform a relevant index through superior security selection. Expenses are generally higher than index funds. An index fund or passively managed fund seeks to match the performance of a market index, such as the S&P 500 index.
What is Net Asset Value (NAV)? ▼
A Net Asset Value is calculated by subtracting from the fund’s total assets any liabilities and then dividing this amount by the total outstanding shares as of the date of the calculation. The NAV is computed once daily, Monday through Friday, at 4:00 p.m. (Eastern time), on days when the fund is open for business. The Buffalo Funds are closed on weekends, days when the NYSE is not open for unrestricted trading, and certain national holidays as disclosed in the SAI.
Can I invest periodically throughout the year? ▼
Smaller denominations of mutual funds provide mutual fund investors the ability to make periodic investments through monthly purchase plans while taking advantage of dollar-cost averaging. So, rather than having to wait until you have enough money to buy higher-cost investments, you can get in right away with mutual funds. The Buffalo Funds offers the option for periodic investing through our Automatic Investment Plan. Click here for the form. Automatic Investment Plans do not assure a profit, nor do they protect against a loss in declining markets.
Can I buy Buffalo Funds without a financial advisor? ▼
Yes. The Buffalo Funds allows you to own shares directly. Simply choose the application appropriate for your account type, complete and sign it, and send it together with your contribution to:
c/o U.S. Bank Global Fund Services
PO BOX 701
MILWAUKEE, WI 53201-0701
Subsequent purchases and redemptions may be made by logging into your account.
What is the minimum amount of money I can invest in a mutual fund? ▼
The minimum initial and subsequent investment amounts for the Buffalo Funds are shown below.
|Regular Accounts (unless opened via an exchange)||$2,500||$100|
|Exchange from another Buffalo Fund||$1,000||$100|
|Automatic Investment Plan||$100||$100|
|IRA and Uniform Transfer/Gifts to Minors Accounts||$250||$100|
|SEPs, Coverdell ESAs, and SAR-SEPs||$250||$100|
How do I get started with a new account? ▼
If you use a broker or financial intermediary, you may contact them. If you wish, you may own shares directly. Simply choose the application appropriate for your account type, complete and sign it, and send it together with your contribution to:
c/o U.S. Bank Global Fund Services
PO BOX 701
MILWAUKEE, WI 53201-0701
How do I access my account and check my balance? ▼
You may check your balance by calling us at (800) 49-BUFFALO (800-492-8332) or by logging into your account.
How do I change my beneficiaries? ▼
You can change your beneficiaries either by completing the appropriate form or by writing us a letter. In either case, the form or letter must be signed by all owners.
How do I determine my cost basis? ▼
There are many methods for determining your cost basis. Some of these are (but not limited to): average cost, first in/first out, high cost, etc. Consult your tax advisor for the method most appropriate for you. To assist you in your cost-basis determination, you may wish to reference the Dividends & Distributions section of our website.
How do I get a Prospectus, Annual Report, or SAI? ▼
You may obtain a prospectus, SAI, or annual report by calling the Buffalo Funds at 800-49-BUFFALO (800-492-8332), or by downloading them here.
What are the ticker symbols for the Buffalo Funds? ▼
Please see the fund information page on our website.
How do I verify transactions? ▼
If you are a direct shareholder, confirmation statements will be mailed to you with two days of placing your trade. You may also call us at (800) 49-BUFFALO (800-492-8332) or log into your account.
How do I view daily prices and fund performance? ▼
You may view daily prices and fund performance on our website here.
What are the investment objectives of my Fund? ▼
As stated in the prospectus, the investment objective for the Buffalo Discovery, Early Stage Growth, Growth, International, Large Cap, Mid Cap, and Small Cap Funds is simply long-term growth of capital. The Buffalo Dividend Focus Fund and High Yield Fund seek current income, with long-term growth of capital as a secondary objective. The Buffalo Flexible Income Fund seeks to generate high current income and, as a secondary objective, long-term growth of capital. Please refer to the prospectus for more information.
What securities are held in my Fund? ▼
We publish a listing of securities held in each Fund as of the most recent calendar-quarter end, with a 30- or 60-day lag depending on the portfolio. Click here to see the most recent holdings report for each Fund. A list of each Fund’s top 10 holdings are included on their respective webpages, including a description of the individual security. Please note we may exclude any portion of holdings from publication when deemed in the best interest of the portfolio, and holdings are subject to change without notice and are not recommendations to buy or sell any securities. Also, the portfolio data may differ from the complete schedules of investments in regulatory filings due to differing accounting and reporting requirements. If you have any questions, please call us at (800) 492-8332.
Where can I find tax info on the Funds? ▼
We provide some tax information on our website here. However, please consult with your tax advisor for full Fund-related taxation information.
Who manages the assets of the Buffalo Funds? ▼
The Buffalo Funds are managed by Kornitzer Capital Management, an investment management firm founded in 1989, which continues to act as advisor to the Funds. Each Fund has one to several professional investment managers, supported by a team of research analysts, whose goal is to outperform a relevant index through superior security selection. A bio for each manager can be found on the Our Team page or on the individual Fund webpage. Portfolio Managers have, on average, over 23 years of professional investment experience.
Where can I find insights and commentaries on the performance and outlook for the Funds? ▼
Each quarter, the Fund managers and research analysts publish a report for each Fund describing the Capital Market Overview, Performance Overview, and Outlook. Click here to find the most recent commentaries.
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Top-Down & Bottom-Up
We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.
We construct our portfolios based on our own proprietary investment strategy.
Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.
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