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Open-end mutual funds guarantee
A. investors a minimum rate of return.
B. investors a minimum NAV.
C. to redeem investor's shares upon demand at current NAV.
D. to earn the rate promised in the prospectus.
E. none of the options
Answer: C

Respuesta :

The correct answer is C. Open-end mutual funds guarantee to redeem investors' shares upon demand at the current NAV.

A mutual fund is a professionally managed investment fund that swimming pools cash from many buyers to buy securities. The time period is commonly used within the u.s.a., Canada, and India, at the same time as comparable structures throughout the globe encompass the SICAV in Europe ('investment corporation with variable capital') and open-ended investment enterprise (OEIC) in the UK.

Mutual finances are often labeled by their main investments: cash marketplace funds, bond or fixed earnings price range, inventory or fairness price range, or hybrid finances. funds may also be categorized as index budgets, which are passively controlled price ranges that tune the overall performance of an index, along with an inventory market index or bond market index, or actively controlled funds, which are seeking to outperform stock marketplace indices but usually fee higher prices. number one structures of mutual finances are open-cease finances, closed-cease finances, and unit investment trusts.

Open-stop finances are bought from or sold to the provider at the internet asset value of every percentage as of the close of the buying and selling day wherein the order became positioned, so long as the order changed into located inside a distinct period earlier than the near of buying and selling. They can be traded directly with the issuer. Mutual price ranges have blessings and downsides compared to direct making investments in individual securities. The blessings of mutual finances include economies of scale, diversification, liquidity, and professional control. however, these come with mutual fund expenses and charges.

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