Commingled Investment Vehicles

Mutual Fund (open-end)
 - allow investors to redeem their shares at NAV every business day
 - NAV = (Assets - Liabilities) / Number of shares outstanding
 - Funds must be able to compute its NAV daily
 - Funds must structure their investment portfolios in a way that enables them to raise cash quickly and easily meet any level of withdraw requests

Closed-End Fund
 - collect money from investors and issue new shares only once at their creation
 - their shares are listed for trading on a stock exchange
 - no redemption. shareholders usually must find a buyer on the open market
 - the price they receive for their shares is determined by supply and demand and is often lower than NAV

Exchange-Traded Fund (ETF)
 - like closed-end fund, ETF shares are traded on a stock exchange
 - BUT ETDs resemble open-end funds in that they're able to adjust the number of shares outstanding. Hence, trades on the exchange normally occur at close to a fund's NAV

Unit Investment Trust
 - they don't hire an investment manager
 - the sponsor selects a portfolio of securities that then doesn't change significantly throughout its life
 - have a limited life span usually
 - cost effective which means that ongoing expenses are very low

Hedge Fund 
 - the only commingled vehicle that is not regulated under the 1940 Act
 - not required to register with the SEC
 - known for using aggressive investment techniques such as leverage
 - appeal to investors looking for high returns and willing to accept high risks
 - unlike other funds, it is not corporations but partnerships