The Intelligent Investor: The Definitive Book On Value part 25. The purpose of this book is to supply, in a form suitable for laymen, guidance in the adoption and execution of an investment policy. Comparatively little will be said here about the technique of analyzing securities; attention will be paid chiefly to investment principles and investors’ attitudes. We shall, however, provide a number of condensed comparisons of specific securities - chiefly in pairs appearing side by side in the New York Stock Exchange list in order to bring home in concrete fashion the important elements involved in specific choices of common stocks | CHAPTER 9 Investing in Investment Funds One course open to the defensive investor is to put his money into investment-company shares. Those that are redeemable on demand by the holder at net asset value are commonly known as mutual funds or open-end funds . Most of these are actively selling additional shares through a corps of salesmen. Those with nonredeemable shares are called closed-end companies or funds the number of their shares remains relatively constant. All of the funds of any importance are registered with the Securities Exchange Commission SEC and are subject to its regulations and controls. The industry is a very large one. At the end of 1970 there were 383 funds registered with the SEC having assets totaling billions. Of these 356 companies with billions were mutual funds and 27 companies with billions were There are different ways of classifying the funds. One is by the broad division of their portfolio they are balanced funds if they have a significant generally about one-third component of bonds or stock-funds if their holdings are nearly all common stocks. There are some other varieties here such as bond funds hedge It is a violation of Federal law for an open-end mutual fund a closed-end fund or an exchange-traded fund to sell shares to the public unless it has registered or made mandatory financial filings with the SEC. t The fund industry has gone from very large to immense. At year-end 2002 there were 8 279 mutual funds holding trillion 514 closed-end funds with billion in assets and 116 exchange-trade funds or ETFs with billion. These figures exclude such fund-like investments as variable annuities and unit investment trusts. 226 Investing in Investment Funds 227 funds letter-stock funds etc. Another is by their objectives as their primary aim is for income price stability or capital appreciation growth . Another distinction is by their method of sale. Load funds add a selling charge generally .
