Few, if any, investment vehicles can match the convenience and other benefits offered by investment companies, which include three main types: mutual funds, closed-end funds, and unit investment trusts.
Mutual funds, also called "open-end" investment companies, come in three main types: stock funds, bond funds, and money market funds. They are considered "open-end" for two reasons. First, they are required to redeem (or buy back) outstanding shares at any time upon a shareholder's request, and at a price based on the current value of the fund's net assets. Second, although not required, virtually all funds continuously offer new fund shares to the public.
Closed-end funds are investment companies that issue a fixed number of shares, which trade on a stock exchange. Unit investment trusts are investment companies that buy and hold a generally fixed portfolio of stocks, bonds, or other securities. Exchange-traded funds are investment companies, usually either a mutual fund or UIT, whose shares are traded intraday on stock exchanges at market-determined prices.
Below you will find background information on different aspects of the investment company industry. Investors interested in educational materials on funds and investing may wish to visit the Investor Education section of this site. Those interested in the latest statistical information and trends in the fund industry should visit our Statistics & Research section.
