Open-End Fund

Open-End Fund
A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell.

The majority of mutual funds are open-end. By continuously selling and buying back fund shares, these funds provide investors with a very useful and convenient investing vehicle.

It should be noted that when a fund's investment manager(s) determine that a fund's total assets have become too large to effectively execute its stated objective, the fund will be closed to new investors and in extreme cases, be closed to new investment by existing fund investors.

Investment dictionary. . 2012.

Look at other dictionaries:

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  • Open-end fund — Also called a mutual fund, an investment company that stands ready to sell new shares to the public and to redeem its outstanding shares on demand at a price equal to an appropriate share of the value of its portfolio, which is computed daily at… …   Financial and business terms

  • open-end fund — noun A collective investment scheme which can issue and redeem shares at any time. Syn: open ended fund Ant: closed end fund …   Wiktionary

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  • open-ended fund — (U.K.) Fin = open end fund …   The ultimate business dictionary

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  • open-end — ˈopen end adjective [only before a noun] an open end fund or trust does not have a fixed number of shares: • an open end mutual fund * * * open end UK US adjective ► (also open ended) FINANCE used to describe an investment fund in which shares… …   Financial and business terms

  • Open-End Management Company — A company that distributes and redeems securities it issues. The most common open end management companies are mutual fund companies which sell and redeem shares at the net asset value per share. This is just a fancy legal name for a mutual fund …   Investment dictionary

  • open-end investment company — Fin a mutual fund, as distinguished from an investment trust, or closed end fund. U.K. term open ended investment company. [m1]See also open end fund …   The ultimate business dictionary

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