Open-end mutual fund

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Open-End Mutual Fund

A mutual fund in which the number of shares may be increased or decreased depending on the amount of money invested in the company. This means that the fund's capitalization is not fixed and changes upon the demand of shareholders. In other words, an open-end mutual fund issues new stock when people invest in it and buys back old shares when investors want to be rid of them. The latter is referred to as redeeming one's share of the mutual fund. The value of each share is the net portfolio value divided by the number of shares. In the United Kingdom, this investment vehicle is usually called an open-end investment company.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Open-end mutual fund.

Most mutual funds are open-end funds. This means they issue and redeem shares on a continuous basis, and grow or shrink in response to investor demand for their shares.

Open-end mutual funds trade at their net asset value (NAV), and if the fund has a front-end sales charge, that sales charge is added to the NAV to determine the selling price.

NAV is the value of the fund's investments, plus money awaiting investment, minus operating expenses, divided by the number of outstanding shares.

An open-end fund is the opposite of a closed-end fund, which issues shares only once. After selling its initial shares, a closed-end fund is listed on a securities market and trades like stock. The sponsor of the fund is not involved in those transactions.

However, an open-end fund may be closed to new investors at the discretion of the fund management, usually because the fund has grown very large.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Further, shares of the Columbia open end fund issued under the acquisition can be redeemed and exchanged subject to a redemption fee of 2% for a period of one year after the closing date of the acquisition and the LaSalle Fund's common stock will cease trading as of the same date.
The trustees of non-diversified open end funds declared on Friday for Putnam Global Income Trust class B shares (Nasdaq:PGLBX) and Putnam Global Income Trust class C shares (Quotron symbol pending) distributions of USD0.0570 per share investment income.
For the non-diversified open end funds Putnam Global Income Trust class M shares (Nasdaq:PGGMX) and Putnam Global Income Trust class R shares (Nasdaq:PGBRX) distributions of USD0.0620 per share investment income.
The board of trustees of the Putnam Funds authorised the distributions of its open end funds, Putnam Global Income Trust - Class B Shares (Nasdaq:PGLBX); Putnam Global Income Trust - Class C Shares (Nasdaq:PGGLX); Putnam Global Income Trust - Class M Shares (Nasdaq:PGGMX); Putnam Global Income Trust - Class R Shares (Nasdaq:PGBRX); Putnam Global Income Trust - Class Y Shares (Nasdaq:PGGYX); Putnam Global Income Trust - Class R5 Shares (Nasdaq:PGGDX); and Putnam Global Income Trust - Class R6 Shares (Nasdaq:PGGEX), the funds disclosed on Monday.
Moreover, mergers would enable the fund managers to avoid duplication of managerial and corporate process besides enhancing the risk absorption capacity of open end funds. The circular is also available on website www.secp.gov.pk.
M2 EQUITYBITES-November 24, 2016-Putnam declares distribution of its nine open end funds
M2 EQUITYBITES-June 27, 2016-Seven Putnam open end funds declare distributions
The above funds are multi-class open end funds that are incorporated in the USA and seek capital growth and current income.
JS Investments Limited (JSIL) has announced the financial results for Open End Funds under its management for the financial year ended June 30, 2010.
Angel Oak Capital Advisors LLC, an investment adviser, declared on Monday that open end funds, the Angel Oak Multi-Strategy Income Fund (US:ANGIX), (US:ANGLX) and (US:ANGCX) paid its October dividend of USD0.0492 per share, USD0.0468 per share and USD0.0396 per share, respectively.
Fixed income specialist Angel Oak Capital Advisors LLC declared on Thursday that the open end funds Angel Oak Multi-Strategy Income Fund Institutional (US:ANGIX), Angel Oak Multi-Strategy Income A (US:ANGLX) and Angel Oak Multi-Strategy Income C (US:ANGCX) has paid its September dividend at a rate of USD0.0542, USD0.0517 and USD0.0442 per share, respectively.