Products & Their RisksQuestion 118 of 398
When an investor redeems open-end mutual fund shares, the fund must generally send payment within:
a.Seven days
b.One day
c.Thirty days
d.Ninety days
Explanation
Under the Investment Company Act of 1940, an open-end fund must redeem shares at NAV and pay the proceeds within seven days of receiving the redemption request. This redeemability at NAV is a defining feature of open-end funds and provides investors with reliable liquidity.
Law Reference: Investment Company Act of 1940Practice all 398 questions free — no signup required.
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