CHARACTERISTICS OF MUTUAL FUNDS

1: Investors purchase mutual fund shares from the fund itself( or through a broker for the fund) instead of from other investors on a secondary market, such as the New York Stock Exchange.

2: The price of investor’s pay of mutual fund shares is the fund’s per share ANV plus any share holder fees that the fund imposes at the time of purchase.

3: Mutual fund shares are “redeemable”, meaning investors can sell their shares back to the fund

4: Mutual funds generally create and sell new shares to accommodate new investors. In other words, they sell their shares on a continuous basis, although some funds stop selling when , for example they become too large

5: The investment portfolios of mutual funds typically are managed by separate entities known as “investment advisers” that are registered with the SEC