Non-Publicly Offered Mutual Fund

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DEFINITION of 'Non-Publicly Offered Mutual Fund'

Mutual funds that are not offered for sale to the general public. Non-publicly offered mutual funds are usually registered via private placement, not as securities, and investors who buy them must meet suitability requirements for income and net worth.

These funds should not be confused with closed-end funds, which have a limited number of shares but are usually offered to the public at large.

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BREAKING DOWN 'Non-Publicly Offered Mutual Fund'

The expenses of non-publicly offered mutual funds are not automatically deducted from the returns realized by the investors in the same manner as publicly traded funds. Non-publicly offered mutual fund expenses appear in box 5 of Form 1099-DIV, and investors can deduct those expenses as miscellaneous investment expenses on www.iSchedule A of the 1040.

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RELATED FAQS
  1. What do the different types of mutual fund classes mean?

    When checking for different quotes on mutual funds, you might see different prices for classes of mutual fund shares that ... Read Full Answer >>
  2. Why do some closed-end mutual funds trade above or below their net asset values?

    Intuition tells us that a mutual fund's net asset value (NAV) (the net value of all assets within the mutual fund's portfolio ... Read Full Answer >>
  3. Can mutual funds outperform savings accounts?

    A mutual fund can – and should – outperform a savings account. In most cases, it should not even be a close race. Savings ... Read Full Answer >>
  4. Can mutual funds invest in private companies?

    Mutual funds can invest in private companies, which may come as a surprise to many investors. It is rare for a fund to have ... Read Full Answer >>
  5. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
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    The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b-1 fees are used, or ... Read Full Answer >>

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