... commercial paper, and bank certificates of deposit. Mutual funds provide the investor with professional management of funds and diversification of investment among the securities offered by leading corporations, federal and state governments, and other entities. Types of Mutual Funds The following are the main two classifications of mutual funds; I) Open-End Fund: An open-end-fund is a fund in which there are unlimited shares available to the investing public. When you want to put money into the fund, you can buy shares from your favorite broker or directly from the fund house. These shares are bought at the Net Asset Value (NAV) of the fund. The NAV is the market value of a mutual fund's total assets, after liabilities, divided by the number of outstanding shares. It is generally calculated daily. II) Closed-End Fund: A close-end-fund is similar to an open-end-fund in most ways. However, it differs in that a limited number of shares ...

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