Interval closed-end funds may purchase from 5% to 25% of outstanding shares from investors at intervals of 3, 6, or 12 months. Discretionary closed-end funds may pur- chase any or all outstanding shares from investors, but no more frequently than once every two years. The repurchase of shares for either of these funds takes place at net asset value plus a repurchase fee that may not exceed 2%. In contrast to closed-end funds, the price of open-end funds cannot fall below NAV, because these funds stand ready to redeem shares at NAV. The offering price will exceed NAV, however, if the fund carries a load. A load is, in effect, a sales charge, which is paid to the seller. Load funds are sold by securities brokers and directly by mutual fund groups. Unlike closed-end funds, open-end mutual funds do not trade on organized exchanges. Instead, investors simply buy shares from and liquidate through the investment company at net asset value. Thus the number of outstanding shares of these funds changes daily.     Other Investment Organizations   There are intermediaries not formally organized or regulated as investment companies that nevertheless serve functions similar to investment companies. Two of the more important are commingled funds and real estate investment trusts.   Commingled Funds Commingled funds are partnerships of investors that pool their funds. The management firm that organizes the partnership, for example, a bank or insur- ance company, manages the funds for a fee. Typical partners in a commingled fund might I. Introduction 4. Mutual Funds and Other Investment Companies The McGraw−Hill Companies, 2001           108 PART I Introduction     be trust or retirement accounts which have portfolios that are much larger than those of most individual investors but are still too small to warrant managing on a separate basis. Commingled funds are similar in form to open-end mutual funds. Instead of shares, though, the fund offers units, which are bought and sold at net asset value. A bank or in- surance company may offer an array of different commingled funds from which trust or re- tirement accounts can choose. Examples are a money market fund, a bond fund, and a common stock fund.   Real Estate Investment Trusts (REITs) A REIT is similar to a closed-end fund. REITs invest in real estate or loans secured by real estate. Besides issuing shares,