Open-end mutual fund

(redirected from Open End Funds)

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.

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.

References in periodicals archive ?
M2 EQUITYBITES-March 26, 2019-Putnam declares various distribution rates for open end funds
Global Banking News-March 26, 2019-Putnam declares various distribution rates for open end funds
open end funds within its High Yield Bond category in performance for that period.
A SHORT REVIEW OF OPEN END FUNDS, PENSION FUNDS AND CLOSE END FUNDS IN PAKISTAN
By LAHORE, May 12, 2011 (Balochistan Times): Lahore Stock Exchange (G) Limited here Wednesday formally enlisted and quoted the units of HBL (Habib Bank Limited) -Islamic Money Market Fund and HBL-Islamic Stock Fund (Open end Funds managed by HBL Asset Management Limited).
M2 EQUITYBITES-November 24, 2016-Putnam declares distribution of its nine open end funds
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-June 27, 2016-Seven Putnam open end funds declare distributions
This was announced by the Board of Directors of JSIL, at a meeting held in Karachi, where the financial results for Open End Funds under its management for the financial year ended June 30, 2011, were announced, and the final distribution to the Unit Holders of selected funds was approved.
The above funds are multi-class open end funds that are incorporated in the USA and seek capital growth and current income.
This was announced by the Board of Directors of JSIL, at a meeting held in Karachi today, where the financial results for Open End Funds under its management for the financial year ended June 30, 2011, were announced, and the final distribution to the Unit Holders of selected funds was approved.
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.