Mutual fund

1 Structure

This article is about mutual funds in the United States.

For other forms of mutual investment, see investment
fund.

In the United States, a mutual fund is registered with the

Securities and Exchange Commission (SEC). Open-end
and closed-end funds are overseen by a board of directors
(if organized as a corporation) or board of trustees (if organized as a trust). The Board is charged with ensuring
that the fund is managed in the best interests of the funds
investors and with hiring the fund manager and other service providers to the fund.

A mutual fund is a professionally managed investment

fund that pools money from many investors to purchase
securities. While there is no legal denition of the term
mutual fund, it is most commonly applied to open-end
investment companies, which are collective investment
vehicles that are regulated and sold to the general public on a daily basis. They are sometimes referred to as
investment companies or registered investment companies. Hedge funds are not mutual funds, primarily because they cannot be sold to the general public. Once a
small player in nancial markets, due to their meteoric
growth in the late 1980s and early 1990s, mutual funds
now play a large and decisive role in the valuation of
tradeable assets such as stocks and bonds.[1]

The sponsor or fund management company, often referred to as the fund manager, trades (buys and sells) the
funds investments in accordance with the funds investment objective. A fund manager must be a registered
investment adviser. Funds that are managed by the same
company under the same brand are known as a fund family or fund complex.

Mutual funds are not taxed on their income and prots as

long as they comply with requirements established in the
U.S. Internal Revenue Code. Specically, they must diversify their investments, limit ownership of voting securities, distribute most of their income (dividends, interest,
and capital gains net of losses) to their investors annually,
and earn most of the income by investing in securities and
currencies.[2] There is an exception: net losses incurred
by a mutual fund are not distributed or passed through to
fund investors but are retained by the fund to be able to
Mutual funds have both advantages and disadvantages
oset future gains.
compared to direct investing in individual securities. Today they play an important role in household nances, The characterization of a funds income is unchanged
when it is paid to shareholders. For example, when a mumost notably in retirement planning.
tual fund distributes dividend income to its shareholders,
There are three types of U.S. mutual funds: open-end
fund investors will report the distribution as dividend infunds, unit investment trusts, and closed-end funds. The
come on their tax return. As a result, mutual funds are
most common type, open-end funds, must be willing
often called pass-through vehicles, because they simto buy back shares from investors every business day.
ply pass on income and related tax liabilities to their inExchange-traded funds (ETFs) are open-end funds or
vestors.
unit investment trusts that trade on an exchange. Nonexchange-traded open-end funds are most common, but Mutual funds may invest in many kinds of securities. The
types of securities that a particular fund may invest in are
ETFs have been gaining in popularity.
set forth in the funds prospectus, a legal document which
Mutual funds are generally classied by their principal indescribes the funds investment objective, investment apvestments. The four main categories of funds are money
proach and permitted investments. The investment obmarket funds, bond or xed income funds, stock or equity
jective describes the type of income that the fund seeks.
funds, and hybrid funds. Funds may also be categorized
For example, a capital appreciation fund generally looks
as index (or passively managed) or actively managed.
to earn most of its returns from increases in the prices
Investors in a mutual fund pay the funds expenses, which of the securities it holds, rather than from dividend or
reduce the funds returns and performance. There is con- interest income. The investment approach describes the
troversy about the level of these expenses.
criteria that the fund manager uses to select investments
for the fund.
In the United States mutual funds must be registered with
the U.S. Securities and Exchange Commission, overseen
by a board of directors or board of trustees, and managed
by a Registered Investment Advisor. Mutual funds are
subject to an extensive and detailed regulatory regime set
forth in the Investment Company Act of 1940. Mutual
funds are not taxed on their income and prots if they
comply with certain requirements under the U.S. Internal
Revenue Code.

2
A mutual funds investment portfolio is continually monitored by the funds portfolio manager or managers.
Hedge funds are not considered a type of (unregistered)
mutual fund. While hedge funds are another type of collective investment vehicle, they are not governed by the
Investment Company Act of 1940 and are not required to
register with the SEC (though hedge fund managers must
register as investment advisers).

3 HISTORY

3 History
The rst mutual funds were established in Europe. One
researcher credits a Dutch merchant with creating the rst
mutual fund in 1774. Mutual funds were introduced to
the United States in the 1890s, and they became popular
in the 1920s.[4]

These early U.S. funds were generally closed-end funds

with a xed number of shares that often traded at prices
above the portfolio value. The rst open-end mutual fund,
2 Advantages and disadvantages
called the Massachusetts Investors Trust (now part of the
MFS family of funds), with redeemable shares was estabAccording to Pozen and Hamacher, mutual funds have lished on March 21, 1924. However, closed-end funds
advantages and disadvantages over investing directly in remained more popular than open-end funds throughout
the 1920s. In 1929, open-end funds accounted for only
individual securities, namely:[3]
5% of the industrys $27 billion in total assets.[5]
Advantages
After the stock market crash of 1929, Congress passed
a series of acts regulating the securities markets in gen Increased diversication: A fund normally holds eral and mutual funds in particular. The Securities Act
many securities; diversication decreases risk.
of 1933 requires that all investments sold to the public,
including mutual funds, be registered with the SEC and
Daily liquidity: Shareholders of open-end funds and that they provide prospective investors with a prospectus
unit investment trusts may sell their holdings back to that discloses essential facts about the investment. The
the fund at the close of every trading day at a price Securities and Exchange Act of 1934 requires that isequal to the closing net asset value of the funds hold- suers of securities, including mutual funds, report reguings.
larly to their investors; this act also created the Securities
and Exchange Commission, which is the principal regu Professional investment management: Open-and lator of mutual funds. The Revenue Act of 1936 estabclosed-end funds hire portfolio managers to super- lished guidelines for the taxation of mutual funds, while
vise the funds investments.
the Investment Company Act of 1940 governs their structure.
Ability to participate in investments that may be When condence in the stock market returned in the
available only to larger investors. For example, in- 1950s, the mutual fund industry began to grow again. By
dividual investors often nd it dicult to invest di- 1970, there were approximately 360 funds with $48 bilrectly in foreign markets.
lion in assets.[6] The introduction of money market funds
in the high interest rate environment of the late 1970s
Service and convenience: Funds often provide ser- boosted industry growth dramatically. The rst retail
vices such as check writing.
index fund, First Index Investment Trust, was formed in
1976 by The Vanguard Group, headed by John Bogle; it
Government oversight: Mutual funds are regulated is now called the Vanguard 500 Index Fund and is one
by the SEC
of the worlds largest mutual funds, with more than $220
billion in assets as of November 30, 2015.[7]
Ease of comparison: All mutual funds are required
Fund industry growth continued into the 1980s and
to report the same information to investors, which
1990s. According to Pozen and Hamacher, growth
makes them easy to compare.
was the result of three factors: a bull market for both
stocks and bonds, new product introductions (including
tax-exempt bond, sector, international and target date
Disadvantages:
funds) and wider distribution of fund shares.[8] Among
the new distribution channels were retirement plans. Mu Fees
tual funds are now the preferred investment option in
certain types of fast-growing retirement plans, speci Less control over timing of recognition of gains
cally in 401(k) and other dened contribution plans and
in individual retirement accounts (IRAs), all of which
Less predictable income
surged in popularity in the 1980s. Total mutual fund assets fell in 2008 as a result of the nancial crisis of 2007
No opportunity to customize
08.

5.1

Open-end funds

In 2003, the mutual fund industry was involved in a

scandal involving unequal treatment of fund shareholders. Some fund management companies allowed favored
investors to engage in late trading, which is illegal, or
market timing, which is a practice prohibited by fund policy. The scandal was initially discovered by former New
York Attorney General Eliot Spitzer and led to a signicant increase in regulation.
At the end of 2015, there were over 15,000 mutual
funds in the United States with combined assets of $18.1
trillion, according to the Investment Company Institute
(ICI), a trade association of U.S. investment companies.
The ICI reports that worldwide mutual fund assets were
$33.4 trillion on the same date.[9]
Mutual funds play an important role in U.S. household
nances; in mid-2015, 43% of U.S. households held mutual fund. Their role in retirement planning is particularly
signicant. Roughly half of the assets in individual retirement accounts and in 401(k) and other similar retirement
plans were invested in mutual funds.[9]

5.1 Open-end funds

Main article: Open-end fund
Open-end mutual funds must be willing to buy back their
shares from their investors at the end of every business
day at the net asset value (NAV) computed that day. Most
open-end funds also sell shares to the public every day;
these shares are also priced at NAV. A professional investment manager oversees the portfolio, buying and selling securities as appropriate. The total investment in the
fund will vary based on share purchases, share redemptions and uctuation in market valuation. There is no legal limit on the number of shares that can be issued.
Open-end funds are the most common type of mutual
fund. At the end of 2015, there were 8,116 open-end
mutual funds in the United States with combined assets
of $15.7 trillion.[9]

5.2 Closed-end funds

Leading complexes

Main article: Closed-end fund

As of September 2015, the top ten open-end fund man- Closed-end funds generally issue shares to the public only
once, when they are created through an initial public ofagers in North America were:[10]
fering. Their shares are then listed for trading on a stock
exchange. Investors who no longer wish to invest in the
1. The Vanguard Group
fund cannot sell their shares back to the fund (as they
can with an open-end fund). Instead, they must sell their
2. Fidelity Investments
shares to another investor in the market; the price they
receive may be signicantly dierent from NAV. It may
3. American Funds (Capital Group)
be at a premium to NAV (i.e., higher than NAV) or,
4. JPMorgan Chase
more commonly, at a discount to NAV (i.e., lower than
NAV). A professional investment manager oversees the
5. T. Rowe Price
portfolio, buying and selling securities as appropriate.
6. BlackRock
7. Franklin Templeton Investments
8. PIMCO
9. Dimensional Fund Advisors

Types

At the end of 2015, there were 558 closed-end funds in

the United States with combined assets of $261 billion.[9]

5.3 Unit investment trusts

Main article: Unit investment trust
Unit investment trusts (UITs) can only issue to the public once, when they are created. UITs generally have a
limited life span, established at creation. Investors can
redeem shares directly with the fund at any time (similar
to an open-end fund) or wait to redeem them upon the
trusts termination. Less commonly, they can sell their
shares in the open market. Unit investment trusts do not
have a professional investment manager; their portfolio
of securities is established at the UITs creation and does
not change.

There are three principal types of mutual funds in the

United States: open-end funds, unit investment trusts
(UITs); and closed-end funds. Exchange-traded funds
(ETFs) are open-end funds or unit investment trusts that
trade on an exchange; they have gained in popularity recently. ETFs are one type of exchange-traded product. While the term mutual fund may refer to all three
types of registered investment companies, it is more commonly used to refer exclusively to the open-and closed- At the end of 2015, there were 5,188 UITs in the United
end funds.
States with combined assets of $94 billion.[9]

5.4

6 INVESTMENTS AND CLASSIFICATION

Exchange-traded funds

Main article: Exchange-traded fund

Money market funds strive to maintain a $1.00 per share

net asset value, meaning that investors earn interest income from the fund but do not experience capital gains
or losses. If a fund fails to maintain that $1.00 per share
because its securities have declined in value, it is said to
break the buck. Only two money market funds have
ever broken the buckCommunity Bankers U.S. Government Money Market Fund in 1994 and the Reserve
Primary Fund in 2008.

A relatively recent innovation, exchange-traded funds

(ETFs) are structured as open-end investment companies
or UITs. ETFs are part of a larger category of investment
vehicles known as exchange-traded products (ETPs),
which, other than ETFs, may be structured as a partnership or grantor trust or may take the form of an exchange- In 2014, the SEC approved signicant changes in money
traded note. Non-ETF exchange-traded products may be market fund regulation. Beginning in October 2016,
used to provide exposure to currencies and commodities. money market funds that are sold to institutional investors and that invest in non-government securities will
ETFs combine characteristics of both closed-end funds
no longer be allowed to maintain a stable $1.00 per share
and open-end funds. ETFs are traded throughout the day
net asset value. Instead, these funds will be required to
on a stock exchange. An arbitrage mechanism is used to
have a oating net asset value.
keep the trading price close to net asset value of the ETF
At the end of 2015, money market funds accounted for
holdings.
18% of open-end fund assets.[9]
Most ETFs are passively managed index funds, though
actively managed ETFs are becoming more common.
ETFs have been gaining in popularity. At the end of 6.2 Bond funds
2015, there were 1,594 ETFs in the United States with
Main article: Bond fund
combined assets of $2.1 trillion.[9]

Investments and classication

Bond funds invest in xed income or debt securities.

Bond funds can be sub-classied according to the specic
types of bonds owned (such as high-yield or junk bonds,
investment-grade corporate bonds, government bonds or
municipal bonds) and by the maturity of the bonds held
(short-, intermediate- or long-term). Bond funds may invest in primarily U.S. securities (domestic or U.S. funds),
in both U.S. and foreign securities (global or world funds),
or primarily foreign securities (international funds).

Mutual funds are normally classied by their principal investments, as described in the prospectus and investment
objective. The four main categories of funds are money
market funds, bond or xed income funds, stock or equity
funds, and hybrid funds. Within these categories, funds
may be subclassied by investment objective, investment
approach or specic focus.
At the end of 2015, bond funds accounted for 22% of
[9]
The SEC requires that mutual fund names be consistent open-end fund assets.

with a funds investments. For example, the ABC New

Jersey Tax-Exempt Bond Fund would generally have to
6.3 Stock funds
invest, under normal circumstances, at least 80% of its
assets in bonds that are exempt from federal income tax,
Main article: Stock fund
from the alternative minimum tax and from taxes in the
state of New Jersey.[11]
Stock or equity funds invest in common stocks which
Bond, stock, and hybrid funds may be classied as eirepresent an ownership share (or equity) in corporations.
ther index (passively managed) funds or actively managed
Stock funds may invest in primarily U.S. securities (dofunds.
mestic or U.S. funds), in both U.S. and foreign securities (global or world funds), or primarily foreign securities (international funds). They may focus on a specic
6.1 Money market funds
industry or sector.
Main article: Money market fund

A stock fund may be subclassied along two dimensions:

(1) market capitalization and (2) investment style (i.e.,
Money market funds invest in money market instruments, growth vs. blend/core vs. value). The two dimensions
which are xed income securities with a very short time are often displayed in a grid known as a style box.
to maturity and high credit quality. Investors often use Market capitalization (cap) indicates the size of the
money market funds as a substitute for bank savings ac- companies in which a fund invests, based on the value
counts, though money market funds are not insured by the of the companys stock. Each companys market capigovernment, unlike bank savings accounts.
talization equals the number of shares outstanding times

7.1

Management fee

the market price of the stock. Market capitalizations are (sales loads and 12b-1 fees), the management fee, secutypically divided into the following categories, with ap- rities transaction fees, shareholder transaction fees and
proximate market capitalizations in parentheses:
fund services charges. Some of these expenses reduce
the value of an investors account; others are paid by the
fund and reduce net asset value.
Micro cap (below $300 million)
Small cap (below $2 billion)
Mid cap
Large cap (at least $10 billion)

Recurring fees and expensesspecically the 12b-1 fee,

the management fee and other fund expensesare included in a funds total expense ratio (TER), often referred to simply the expense ratio. Because all funds
must compute an expense ratio using the same method,
investors may compare costs across funds.

Funds can also be classied in these categories based on There is considerable controversy about the level of mutual fund expenses.
the market caps of the stocks that it holds.
Stock funds are also subclassied according to their investment style: growth, value, or blend (or core). Growth 7.1 Management fee
funds seek to invest in stocks of fast-growing companies.
Value funds seek to invest in stocks that appear cheaply Main article: Management fee
priced. Blend funds are not biased toward either growth
or value.
The management fee is paid to the management company
At the end of 2015, stock funds accounted for 52% of the or sponsor that organizes the fund, provides the portfoassets in all U.S. mutual funds.[9]
lio management or investment advisory services and normally lends its brand to the fund. The fund manager may
also provide other administrative services. The manage6.4 Hybrid funds
ment fee often has breakpoints, which means that it declines as assets (in either the specic fund or in the fund
Hybrid funds invest in both bonds and stocks or in
family as a whole) increase. The management fee is paid
convertible securities. Balanced funds, asset allocation
by the fund and is included in the expense ratio.
funds, target date or target risk funds and lifecycle or
The funds board reviews the management fee annually.
lifestyle funds are all types of hybrid funds.
Fund shareholders must vote on any proposed increase,
Hybrid funds may be structured as funds of funds, meanbut the fund manager or sponsor can agree to waive some
ing that they invest by buying shares in other mutual funds
or all of the management fee in order to lower the funds
that invest in securities. Many fund of funds invest in
expense ratio.
aliated funds (meaning mutual funds managed by the
same fund sponsor), although some invest in unaliated
funds (i.e., managed by other fund sponsors) or some 7.2 Distribution charges
combination of the two.
At the end of 2015, hybrid funds accounted for 9% of the Main article: Mutual fund fees and expenses
assets in all U.S. mutual funds.[9]
Distribution charges pay for marketing, distribution of
the funds shares as well as services to investors. There
6.5 Index (passively managed) versus ac- are three types of distribution charges:

tively managed

Main articles: Index fund and active management

An index fund or passively managed fund seeks to match
the performance of a market index, such as the S&P 500
index, while an actively managed fund seeks to outperform a relevant index through superior security selection.

Expenses

Investors in a mutual fund pay the funds expenses. These

expenses fall into ve categories: distribution charges

Front-end load or sales charge. A front-end load or

sales charge is a commission paid to a broker by a
mutual fund when shares are purchased. It is expressed as a percentage of the total amount invested
or the public oering price, which equals the net
asset value plus the front-end load per share. The
front-end load often declines as the amount invested
increases, through breakpoints. The front-end load
is paid by the shareholder; it is deducted from the
amount invested.
Back-end load. Some funds have a back-end load,
which is paid by the investor when shares are redeemed. If the back-end load declines the longer

8 SHARE CLASSES
the investor holds shares, it is called a contingent
deferred sales charges (CDSC). Like the front-end
load, the back-end load is paid by the shareholder;
it is deducted from the redemption proceeds.
12b-1 fees. Some funds charge an annual fee to
compensate the distributor of fund shares for providing ongoing services to fund shareholders. This
fee is called a 12b-1 fee, after the SEC rule authorizing it. The 12b-1 fee is paid by the fund and reduces
net asset value.

A no-load fund does not charge a front-end load or backend load under any circumstances and does not charge a
12b-1 fee greater than 0.25% of fund assets.

7.3

Securities transaction fees

A mutual fund pays expenses related to buying or selling the securities in its portfolio. These expenses may
include brokerage commissions. Securities transaction
fees increase the cost basis of investments purchased and
reduce the proceeds from their sale. They do not ow
through a funds income statement and are not included
in its expense ratio. The amount of securities transaction
fees paid by a fund is normally positively correlated with
its trading volume or turnover.

Fund accounting fee: for performing investment or

securities accounting services and computing the net
asset value (usually every day the New York Stock
Exchange is open)
Professional services fees: legal and auditing fees
Registration fees: paid to the SEC and state securities regulators
Shareholder communications expenses: printing
and mailing required documents to shareholders
such as shareholder reports and prospectuses
Transfer agent service fees and expenses: for keeping shareholder records, providing statements and
tax forms to investors and providing telephone, internet and or other investor support and servicing
Other/miscellaneous fees
The fund manager or sponsor may agree to subsidize
some of these other expenses in order to lower the funds
expense ratio.

7.6 Controversy

Critics of the fund industry argue that fund expenses are

too high. They believe that the market for mutual funds
7.4 Shareholder transaction fees
is not competitive and that there are many hidden fees,
so that it is dicult for investors to reduce the fees that
Shareholders may be required to pay fees for certain
they pay. They argue that the most eective way for intransactions. For example, a fund may charge a at fee
vestors to raise the returns they earn from mutual funds
for maintaining an individual retirement account for an
is to invest in funds with low expense ratios.
investor. Some funds charge redemption fees when an
investor sells fund shares shortly after buying them (usu- Fund managers counter that fees are determined by a
ally dened as within 30, 60 or 90 days of purchase); re- highly competitive market and, therefore, reect the value
demption fees are computed as a percentage of the sale that investors attribute to the service provided. They also
amount. Shareholder transaction fees are not part of the note that fees are clearly disclosed.
expense ratio.
An additional critique of mutual funds is their potential
role in herd behavior during asset bubbles. Australian researchers Preston Teeter and Jorgen Sandberg argue that
7.5 Fund services charges
the explosive growth of mutual funds during the 1990s
resulted in a large number of rookie mutual fund manA mutual fund may pay for other services including:
agers, many of whom were quick to follow industry trends
as opposed to carving out their own unique investment
Board of directors or trustees fees and expenses
strategies.[1] As a result, funds started to closely mimic
Custody fee: paid to a custodian bank for holding one another, and stock prices, particularly of internet
the funds portfolio in safekeeping and collecting in- companies, quickly surpassed fundamental valuations.
come owed on the securities
Fund administration fee: for overseeing all administrative aairs such as preparing nancial statements
and shareholder reports, SEC lings, monitoring
compliance, computing total returns and other performance information, preparing/ling tax returns
and all expenses of maintaining compliance with
state blue sky laws

8 Share classes
A single mutual fund may give investors a choice of different combinations of front-end loads, back-end loads
and 12b-1 fees, by oering several dierent types of
shares, known as share classes. All of them invest in the

9.2

Expense ratio

same portfolio of securities, but each has dierent expenses and, therefore, a dierent net asset value and different performance results. Some of these share classes
may be available only to certain types of investors.

7
A funds net asset value (NAV) equals the current market value of a funds holdings minus the funds liabilities
(sometimes referred to as net assets). It is usually expressed as a per-share amount, computed by dividing net
assets by the number of fund shares outstanding. Funds
must compute their net asset value according to the rules
set forth in their prospectuses. Funds compute their NAV
at the end of each day that the New York Stock Exchange
is open, though some funds compute NAVs more than
once daily.

Funds oering multiple classes often identify them with

letters, though they may also use names such as Investor Class, Service Class, Institutional Class, etc.,
to identify the type of investor for which the class is intended. The SEC does not regulate the names of share
classes, so that specics of a share class with the same
name may vary from fund family to fund family.
Valuing the securities held in a funds portfolio is often
Typical share classes for funds sold through brokers or the most dicult part of calculating net asset value. The
funds board typically oversees security valuation.
other intermediaries are as follows:
Class A shares usually charge a front-end sales load 9.2
together with a small 12b-1 fee.

Expense ratio

Class B shares usually do not have a front-end sales

load; rather, they have a high contingent deferred
sales charge (CDSC) that gradually declines over
several years, combined with a high 12b-1 fee. Class
B shares usually convert automatically to Class A
shares after they have been held for a certain period.

The expense ratio allows investors to compare expenses

across funds. The expense ratio equals the 12b-1 fee plus
the management fee plus the other fund expenses divided
by average daily net assets. The expense ratio is sometimes referred to as the total expense ratio (TER).

Class C shares usually have a high 12b-1 fee and a

modest contingent deferred sales charge that is discontinued after one or two years. Class C shares
usually do not convert to another class. They are often called level load shares.

9.3 Average annual total return

Class I are usually subject to very high minimum

investment requirements and are, therefore, known
as institutional shares. They are no-load shares.
Class R are usually for use in retirement plans such
as 401(k) plans. They typically do not charge loads,
but do charge a small 12b-1 fee.
No-load funds often have two classes of shares:
Class I shares do not charge a 12b-1 fee
Class N shares charge a 12b-1 fee of no more than
0.25% of fund assets
Neither class of shares typically charges a front-end or
back-end load

Denitions

Denitions of key terms.

9.1

Net asset value

Main article: Net asset value

The SEC requires that mutual funds report the average

annual compounded rates of return for one-, ve-and ten
year-periods using the following formula:[12]
P(1+T)n = ERV
Where:
P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of
the one-, ve-, or ten-year periods at the end
of the one-, ve-, or ten-year periods (or fractional portion)

9.4 Turnover
Turnover is a measure of the volume of a funds securities
trading. It is expressed as a percentage of average market
value of the portfolios long-term securities. Turnover is
the lesser of a funds purchases or sales during a given year
divided by average long-term securities market value for
the same period. If the period is less than a year, turnover
is generally annualized.

13

10

See also

Fund derivative
Global assets under management
Lipper average
List of mutual-fund families in Canada
List of mutual-fund families in the United States
List of U.S. mutual funds by assets under management
Money fund
Mutual funds in India
Mutual-fund scandal (2003)
Operation Perfect Hedge
Retirement plans in the United States
Separately managed account
Value investing

11

References

[1] Teeter, Preston; Sandberg, Jorgen (2016). Cracking the

enigma of asset bubbles with narratives. Strategic Organization. doi:10.1177/1476127016629880.
[2] 26 U.S. Code 851 Denition of regulated investment
company. Legal Information Institute. Cornell University
Law School. Retrieved 9 March 2015. 851(b)(2) and (3)
[3] Pozen, Robert; Hamacher, Theresa (2014). The Fund Industry: How Your Money is Managed (Second Edition).
John Wiley & Sons. pp. 45.
[4] K. Geert Rouwenhorst (December 12, 2004), The Origins of Mutual Funds, Yale ICF Working Paper No. 0448.
[5] Fink, Matthew P. (2008). The Rise of Mutual Funds. Oxford University Press.
[6] Fink (2008), p. 63.
[7] Vanguard 500 Index Fund Investor Shares. The Vanguard Group. Retrieved 2016-01-10.
[8] Pozen and Hamacher (2014), pp. 1014.
[9] 2016 Investment Company Fact Book. Investment Company Institute. Retrieved 11 September 2016.
[10] EY Global Fund Distribution
[11] 17 CFR 270.35d-1
[12] Final Rule: Registration Form Used by Open-End Management Investment Companies: Sample Form and instructions. U.S. Securities and Exchange Commission
(SEC). Retrieved 2008-09-25.

EXTERNAL LINKS

12 Further reading
Matthew P. Fink (2011). The Rise of Mutual Funds:
An Insiders View (2nd ed.). Oxford University
Press. ISBN 978-0199753505.
Thomas P. Lemke; Gerald T. Lins; A. Thomas
Smith (2016). Regulation of Investment Companies.
Matthew Bender. ISBN 978-0-8205-2005-6.
Thomas P. Lemke; Gerald T. Lins; W. John
McGuire (2015). Regulation of Exchange-Traded
Funds. Matthew Bender. ISBN 978-0-7698-91316.
Robert Pozen; Theresa Hamacher (2015). The
Fund Industry: How Your Money is Managed (2nd
ed.). Hoboken, NJ: Wiley Finance. ISBN 9781118929940.

13 External links
U.S. Securities and Exchange Commissions Guide
for Mutual Fund Investors

14
14.1

Text and image sources, contributors, and licenses

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