Characteristics of mutual funds

Characteristics of Open$-$End Mutual Funds

Open$-$end mutual funds are the most common type of investment company. Which of the following statements characterize these funds? Check all that apply.

Fairly liquid investments.

Issue new shares in response to increased demand.

Increase diversification but do not reduce nonsystematic risk.

Require minimum purchases of $$3,000.$

Charge high fees in exchange for professional management.

Some investment companies have products that are similar in many ways to open$-$end funds$-$with differences that can make them desirable for investors. A closed$-$end mutual fund issues a fixed number of shares upon the creation of the fund, which investors can resell

$.$ This means that the price of a share depends primarily on the