7. Other types of funds Step 1 The following table lists descriptions of various types of funds. Use the table to indicate the type of fund that most closely matches the fund description. Closed- End funds Venture Capital Funds Exchange- Traded Funds Private Equity Funds Fund Description Real Estate Investment Trusts A fund that issues shares and uses the funds to invest in securities in a particular industry or country. This type of fund does not allow new investors after the initial share offering. A fund that seeks to mirror the performance of a particular stock index. The fixed number of shares of this type of fund are often traded on a stock exchange. O o A fund that solicits money from wealthy individuals and institutions (with a large required minimum investment) and invests the funds in a diversified portfolio of companies. o o O o o o A fund that purchases the majority (or entire) stakes of businesses using pooled funds from individuals and institutions, with the goal of improving the performance of acquired companies. o O A closed fund that focuses on investments in real estate and mortgages. This type of fund usually allows smaller investors and requires low minimum investments. O O O O Step 2 ETFs are usually managed because they are designed to mimic the performance of a particular stock index. actively Step 2 not actively ETFs are usually managed because they are designed to mimic the performance of a particular stock index