How can investors typically redeem shares in an open-end mutual fund?

Investors can typically redeem shares in an open-end mutual fund directly from the fund at the current net asset value (NAV). This process is fundamental to the structure of open-end mutual funds, which do not have a limit on the number of shares they can issue. Instead of trading on a secondary market like closed-end funds or individual stocks, investors in open-end funds have the ability to buy and sell shares directly with the fund company.

When an investor decides to redeem shares, the fund calculates the current NAV, which reflects the total value of the fund's assets minus its liabilities, divided by the total number of shares outstanding. This valuation is conducted at the end of each trading day, ensuring that investors receive the most accurate price for their shares at the time of redemption.

This mechanism allows for liquidity and flexibility, giving investors the ability to access their funds as needed without the constraints imposed by market trading or limits on the timing of sales. The other options do not align with how open-end mutual funds operate; for instance, secondary market trading or selling shares to other investors applies more to closed-end mutual funds and stocks. Furthermore, the notion of only redeeming at the end of an investment period does not apply to open-end mutual funds, as they allow