Differentiate between open-end and closed-end mutual funds. Now imagine that you bought a mutual fund that had a beginning NAV of $10 per share. It paid dividends of $0.50 and distributed capital gains of $0.75. After one year, the ending NAV is $9.50.What is your total return?

208: Mutual Funds

Respond to the following prompt and scenario:

• Differentiate between open-end and closed-end mutual funds. (Your response should be 1 – 2 paragraphs.)

• Now imagine that you bought a mutual fund that had a beginning NAV of $10 per share. It paid dividends of $0.50 and distributed capital gains of $0.75. After one year, the ending NAV is $9.50.What is your total return? (Do the math using MS Excel or the tables tool in MS Word to make your calculations and show all of your work. )

You must cite your sources. Be sure to respond in a business-like manner using proper spelling, grammar and sentence structure.

Discussion Forum Prompt

Post your answer to the questions below. Postings should be at least 1 – 2 complete paragraphs including in-depth content that demonstrates knowledge of the subject matter. Be sure to use correct grammar and spelling.

• Research mutual funds and choose a fund in which you might like to invest.

• Identify this fund and explain why you are interested.

• Be sure to address such issues as past returns, expected future returns, the amount of fees and expenses, and why its investment objectives are attractive to you.