Abstract
When the term mutual fund is used in the investment marketplace, most people think of open-end funds (funds that offer an unlimited number of shares and redemption privileges at any time). In addition to open-end investment company funds, however, there are three other primary types of pooled funds in the United States: closed-end investment company funds (CEFs), unit investment trusts (UITs), and exchange-traded funds (ETFs, which are the subjects of Chapters 6 through 8, respectively. The present chapter reviews the tremendous growth of mutual funds, including recent trends in mutual fund investing. Then it discusses who owns mutual funds, why they own them, and where they own them. The chapter concludes with a description of the normal classification of mutual funds by their principal investments.
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Sources: ETF data prior to 2001 courtesy of Strategic Insight Simfund. All other data courtesy of Investment Company Institute from 2013 Investment Company Fact Book: A Review of Trends and Activity in the U.S. Investment Company Industry. Washington, DC: Investment Company Institute (2013). Available at www.icifactbook.org .
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Figure 2.2 in 2013 Investment Company Fact Book: A Review of Trends and Activity in the U.S. Investment Company Industry. Washington, DC: Investment Company Institute (2013). Available at www.icifactbook.org/fb_ch2.html .
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Figure 6.2 in 2013 Investment Company Fact Book: A Review of Trends and Activity in the U.S. Investment Company Industry. Washington, DC: Investment Company Institute (2013). Available at www.icifactbook.org/fb_ch6.html .
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Figure 7.7 in 2013 Investment Company Fact Book: A Review of Trends and Activity in the U.S. Investment Company Industry. Washington, DC: Investment Company Institute (2013). Available at www.icifactbook.org/fb_ch6.html .
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A guaranteed investment contract (GIC) is an insurance product offering a guaranteed interest rate for some period of time as well as a protection of principal. It is similar to a bank certificate of deposit, but without federal insurance protection up to $250,000 per deposit. A synthetic GIC that combines an asset owned directly by a retirement plan trust and a wrap contract providing book-value protection for participant withdrawals prior to the maturity of the contract.
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The market capitalization of a stock is its current price per share times the number of outstanding shares. The following definitions are widely accepted in the investment community, as reflected at Investopedia.com .
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© 2013 Keith R. Fevurly
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Fevurly, K.R. (2013). The Growth of Mutual Funds. In: The Handbook of Professionally Managed Assets. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-6020-2_3
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DOI: https://doi.org/10.1007/978-1-4302-6020-2_3
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Publisher Name: Apress, Berkeley, CA
Print ISBN: 978-1-4302-6019-6
Online ISBN: 978-1-4302-6020-2
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