- A type of mutual fund that gives investors the option to sell shares back to the fund at their net asset value at the end of each business day. An open-end fund will constantly increase and decrease the number of shares in the fund as investors buy and sell shares in the fund, which provides investors with a convenient and flexible investment vehicle. Open-end funds are managed by a professional investment manager who buys and sells securities within the mutual fund's investment portfolio. Also known as an "open-end mutual fund" or "open-end investment."
open-end mutual fund, open-end investment
Related Terms and Acronyms
- Closed-end Fund — Definition,
- A mutual fund with shares initially sold to investors through an IPO; afterwards, the fund is listed on a stock exchange to be bought and sold.
- Investment — Definition,
- Something you put your money into in order to make money.
- Investment Income — Definition,
- Income that is earned from investments such as interest, dividends, and capital gains.
- Mutual Fund — Definition,
- A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
- Portfolio — Definition,
- A collection of investments.
- Protected Fund — Definition,
- A mutual fund that guarantees investors a return on their investments.
- Secondary Market — Definition,
- A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
- Securities/Investment Dealer — Definition,
- One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.
- Security — Definition,
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- Segregated Fund — Definition,
- Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.