Which of the following are sources of income for an open-end mutual fund?
I. dividend and interest income
II. change in the discount or premium
III. capital gains
IV. change in NAV

Question

Quizplus · Accepted Answer

Open-end mutual funds earn income through dividends and interest (I), capital gains from selling securities (III), and changes in the Net Asset Value (NAV) due to the appreciation of the fund's holdings (IV). Changes in discount or premium (II) are not applicable to open-end funds, as they are relevant to closed-end funds.

Which of the Following Are Sources of Income for an Open-End