Open-End Fund — Definition

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What is an Open-End Fund?

An open-end fund is a collective investment product where the issuer can redeem or issue shares at any time. Most mutual funds are open-end funds.

Since the issuers can redeem or issue new shares at any time, they can meet the needs of investors very fluidly - buying back shares if an investor wishes to sell, or issuing new ones if demand rises.

A manager also has the option to ‘close’ an open-end fund if they feel the fund 06has grown too large to allow new investors. Most mutual funds start out as open-end funds.

What is a Closed-End Fund?
What Are the Basics of Mutual Funds?
What’s Better: ETFs or Mutual Funds?

Keywords: mutual funds, open-end fund,

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