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. Investopedia Says:
The vast majority of mutual funds are of the open-end variety. 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. Related Terms:
Back-End Load
Closed Fund
Closed-End Investment
Exchange-Traded Fund - ETF
Front-End Load
Fund Company
Incubated Fund
Mutual fund
Net Asset Value - NAV
Net Asset Value Per Share - NAVPS |