Equity · Core
Mutual Fund
A mutual fund is an open-end vehicle that deals at end-of-day NAV — no intra-day book, and redemptions can force sales.
Definition
Investors subscribe and redeem with the fund at a once-a-day NAV. The manager may hold cash or swing-price to tax the redeeming flow. Unlike ETFs, there is no intra-day arb by default.
Why it matters
Flow is a first-order risk. Open-end vehicles on illiquid assets are a liquidity mismatch — 2008 and 2015–16 credit funds taught it.
Case
A daily-dealing credit fund meets a redemption wave, sells the liquid names, and leaves remaining holders with the sludge. Dilution is the product design.
How to read it
Dealing frequency vs asset liquidity, swing pricing, and gates. The strategy slide is secondary.
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