Multiple choice

An open-end mutual fund is one that has:

  1. Units available for sale and repurchase at all times

  2. An upper limit on its NAV

  3. A fixed fund size

  4. An option to invest in any kind of security
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A Correct answer
Explanation

Open-end mutual funds allow continuous purchase and redemption of units at any time based on the prevailing NAV. They don't have a fixed fund size (can issue new units), don't have NAV limits, and follow specific investment mandates rather than being able to invest in any security.

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