Which mutual fund characteristic allows investors to purchase additional units at any time? A. Lock-in period B. Open-end fund C. Close-end fund D. Dividend reinvestment plan (DRIP)
Question
Which mutual fund characteristic allows investors to purchase additional units at any time? A. Lock-in period B. Open-end fund C. Close-end fund D. Dividend reinvestment plan (DRIP)
Solution
The mutual fund characteristic that allows investors to purchase additional units at any time is B. Open-end fund. This type of fund does not have a fixed number of shares. Instead, the fund issues new shares or redeems existing shares as needed. As a result, investors can purchase additional units at any time.
Similar Questions
Mutual fund withdrawal options excludesMultiple ChoiceWithdrawal of all asset growth from income dividends and capital gains.Liquidation or selling of a certain number of shares each investment period.Withdrawal of a fixed percentage of asset growth.Selling of open-end mutual fund share on the Toronto Stock Exchange.Selling shares of a closed-end fund on an exchange or over the counter market.
Which type of fund is most likely to own illiquid securities?Group of answer choicesexchange traded funds (ETFs)open-ended mutual fundsclosed-ended mutual funds
Which of the following has a lock in period till retirement?a. PPFb. ELSS Mutual Fundc. Long term FDsd. EPF
Which among the following mutual fund schemes would predominantly invest in equity shares?(1.0 Marks)Growth FundAIncome FundBLiquid FundCMoney Market Fund
Multiple Choice QuestionMost open-end funds provide their investors with the ability to change shares in one fund to another fund within the same Blank______.Multiple choice question.investment objectivestock exchangefamilymarket
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.