Open-end Fund

Definition

• 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."

Synonyms
open-end investment, open-end mutual fund

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,
  • Property designated as collateral.
  • A tradable financial implement that represents ownership, the rights to ownership or debt.
  • 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.