As with some stocks, certain closed-end funds distinguish between common shareholders and preferred shareholders -- these funds are called dual-purpose funds. As the name suggests, common shareholders receive all distributions from capital gains, while preferred shareholders receive all dividend and interest income. These funds have a set expiration date, at which time all preferred shares in the fund are redeemed, giving the common shareholders sole ownership of the fund. Those shareholders then decide whether to liquidate the fund and divide up the proceeds or to convert the fund into an open-end mutual fund.
Mutual funds are in business first and foremost to make money for themselves; their second priority is to make money for their shareholders. For this reason, all mutual funds charge fees, and these fees come in several different varieties. Some of them are common to all mutual funds; others are charged by some but not others. Before you invest in a fund, you should look at the total of the fees and expenses that they charge.
Mutual funds are in business first and foremost to make money for themselves; their second priority is to make money for their shareholders. For this reason, all mutual funds charge fees, and these fees come in several different varieties. Some of them are common to all mutual funds; others are charged by some but not others. Before you invest in a fund, you should look at the total of the fees and expenses that they charge.
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