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c. Individual stocks and bonds: No management fee, realization of capital gains or losses can be coordinated with investor’s personal tax situation, portfolio can be designed to investor’s specific risk profile. 10. Open-end funds are obligated to redeem investor's shares at net asset value, and thus must keep cash or cash-equivalent securities on hand in order to meet potential redemptions. Closed-end funds do not need the cash reserves because there are no redemptions for closed-end funds. Investors in closed-end funds sell their shares when they wish to cash out. 4-2
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