GO
Loading...

Open-Ended Mutual Funds: CNBC Explains

Mutual funds make up a large portion of America’s retirement funds and investments. Understanding how these funds operate should be a big part of anyone’s financial knowledge. Salman Khan of the Khan Academy outlines a hypothetical example of how an open-ended mutual fund works with its investors.

From this first video, you’ll understand:

  • The nature of an open-ended mutual fund
  • How investors take shares in a mutual fund

From this second video, you’ll understand:

  • What Net Asset Value (NAV) means in the context of a mutual fund
  • How redemptions force managers to keep some assets in cash

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • Trading Nation

    Trader Nation is not simply about finding that next trade -- it is a place where traders trade better together.

  • Inside the market's biggest sectors with a look at the trends, companies and trades netting profits for investors.

  • CNBC 'Explains' the complicated economics of our world—from stocks and balance sheets, to trade and public policy.