Chapter 11. How to Get the Most from Closed-End Mutual Funds
When the term mutual fund is used, most people think of funds such as Fidelity Magellan or the Vanguard Standard & Poor’s 500 Index Fund, or of other funds structured in the same manner. These are “open-end” mutual funds (also simply referred to as mutual funds), one of three classes of investment companies. The other two classes are closed-end funds and unit investment trusts. These three classes of investment companies have much in common, but they also have their differences, which we will examine before we move along further.
Open-End Mutual Funds
Open-end mutual funds are operated by investment companies that raise money from shareholders, which money is then invested in various ways ...