The invention of the closed-end mutual fund.

definition
  • A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets. Closed end mutual funds consist of fixed numbers of shares.
  • Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund.
INVENTION AND INVENTOR
  • Adriaan Van Ketwich, a Dutch merchant, invented the closed end mutual fund in 1774, after the financial crisis in 1772-1773 in Europe, to spread the overall risk involved in investing by diversifying across a number of European countries and American colonies, this also allowed investors with smaller amounts of capital to invest².
  • Van Ketwich introduced the fund under the name “Eendragt Maakt Magt” (translated: “Unity Creates Strength”)³.




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