Which of the following is an advantage to investors of an open-end mutual fund?

Question

Quizplus · Accepted Answer

The advantage to investors of an open-end mutual fund is that the fund agrees to redeem shares at any time, allowing investors to sell their shares back to the fund as needed. This provides investors with liquidity and flexibility, as they can easily and quickly convert their investment to cash without having to find a buyer on the market. A is incorrect because investors may still have to make additional contributions or face fees if the fund's expenses increase. B is incorrect because investors typically sell their shares back to the fund and not on the over-the-counter market. D is incorrect because open-end mutual funds are priced based on the net asset value (NAV), which is the value of the assets held by the fund divided by the number of outstanding shares, so the market value of the shares should reflect the NAV.

Which of the Following Is an Advantage to Investors of an Open-End