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An open end fund that is purchased and redeemed with an investment company is a mutual fund. These investments are issuing new shares and are normally bought paying a sales charge to the company or a selling group member firm.
There are mutual funds invested in every sector of the market and every investment objective. The type of fund you choose should reflect your income needs, risk tolerance and your current and projected future financial situation.
ETF - Exchange Traded Funds
The market has embraced ETF's in a big way with more and more funds coming out. One of the reasons for their popularity is tradional mutuals don't "trade" and need to be redeemed with the fund company. Also, because of the sales charges and redemption fees, trading in and out
of mutual funds made it difficult to recover costs and fees. With Exchange Traded Funds, the ETF is bought and sold on an exchange or OTC for a commission. They also can be bought and sold quickly for true day trading principles.
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