Financial History 100th Edition Double Issue (Spring/Summer 2011) | Page 58

The Most Notable Figures In 1940 few Americans had heard of mutual funds. Today they are Americans’ favorite investment, having more than 90 million shareholders and over $12 trillion in assets. Funds’ success is the result of the work of specific individuals, some of whom are described below. Edward G. Leffler The First Mutual Fund Closed-end funds became popular during the bull market of the 1920s. A closed-end fund issues its shares to the public and uses the proceeds to acquire a portfolio of securities. Thereafter the fund’s shares trade in the market at prices that can be greater or less than the value of the portfolio. In 1924, Edward G. Leffler organized the first mutual fund, Massachusetts Investors T