What are two major reasons why investors purchase mutual funds? Explain each. How do a closed-end fund, an open-end fund, and an exchange-trade fund differ? What are the management fees, 12b-1 fees, and expense ratios? Why do you think fund managers offer so many different kinds of funds? What is a family of funds? How is it related to shareholder exchanges? In your own words, describe the difference between a managed fund and an index fund.