Which of the following describes a key characteristic of an open-end mutual fund?

Question: Which of the following describes a key characteristic of an open-end mutual fund?

Answer options: ✅ Shares are continuously offered and redeemed by the fund at their Net Asset Value (NAV).

• A fixed number of shares are issued and trade on a stock exchange.
• The fund's unit price is solely determined by market demand and supply.
• It typically has lower management expense ratios (MERs) than exchange-traded funds.

Correct answer: Shares are continuously offered and redeemed by the fund at their Net Asset Value (NAV).

Explanation: Open-end mutual funds continuously issue new units when investors want to buy and redeem units when investors want to sell, with transactions based on the fund's Net Asset Value (NAV) as per standard mutual fund structure definitions.