4a0b8878_h___Virtus_Investment_Partners__Open_End_Mutual_Funds
[Preferred Ranking] #4 [Closed-End Funds] Liquidity A closed-end fund’s number of outstanding shares is fixed at the time of the initial public offering (with limited ways to increase or decrease that number during the fund’s life). Shares then trade on the stock exchange; however, for particularly small funds, even a modest size transaction may move the market. Institutional investors, in particular, favor larger funds that can provide the needed liquidity to accumulate, and later sell, a meaningful position. Even individual investors are more inclined to trade closed-end funds than open-end funds; indeed, that is part of their appeal. Closed-end fund investors can buy and sell intraday, while open-end fund investors may only purchase or redeem shares once a day at the closing NAV. [Open-End Mutual Funds] 
Volatility The volatility of open-end funds is measured by NAV volatility using the key metrics of standard deviation and, in the case of interest rate-sensitive funds, portfolio duration. Higher standard deviation suggests greater risk so investors tend to prefer lower measures. Nevertheless, higher deviations may be acceptable and even desirable to investors who can tolerate it. Duration measures how strongly a fund’s NAV will react to a change in interest rates; the higher the number, the greater the reaction.
Love Me, Love Me Not? Finding the Right Fund Match | Virtus Investment Partners
Open-End Mutual Funds