The Growth of Mutual Funds
When the term mutual fund is used in the investment marketplace, most people think of open-end funds (funds that offer an unlimited number of shares and redemption privileges at any time). In addition to open-end investment company funds, however, there are three other primary types of pooled funds in the United States: closed-end investment company funds (CEFs), unit investment trusts (UITs), and exchange-traded funds (ETFs, which are the subjects of Chapters 6 through 8, respectively. The present chapter reviews the tremendous growth of mutual funds, including recent trends in mutual fund investing. Then it discusses who owns mutual funds, why they own them, and where they own them. The chapter concludes with a description of the normal classification of mutual funds by their principal investments.