Q: What's the difference between unit-investment trusts and mutual funds?
- H.G., Rutland, Vt.
A: Mutual-fund managers invest in assets (such as stocks or bonds) according to stated sets of objectives. Shares are issued and redeemed on demand at a specific net asset value determined at the end of each trading day (based on the total market value of the fund's holdings). The number of shares is not fixed. If many people want to buy in, the fund company will issue more shares.