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.

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 ?
Non-diversified, open-end mutual funds, INFIX and MLPPX's structure, formed as a Regulated Investment Company (RIC), invest across the capital structure of Master Limited Partnerships (MLPs) and energy infrastructure entities.
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Furthermore, determination, computation and collection of CGT on redemption of units of open-end mutual funds have also been finalized for the period July 01, 2018 to September 30, 2018.
The new alliance pairs Mercer's broad global institutional manager data and research with Morningstar's independent research and data spanning open-end mutual funds, exchange-traded funds, separately managed accounts, and indexes.
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He said NAFA was managing total assets of around Rs.100.3 billion as of March 2017 in 21 open-end mutual funds, 6 pension sub-funds and 193 investment advisory mandates.
The company provides data on roughly 195,000 open-end mutual funds, 9,600 closed-end funds and 12,200 exchange-traded product listings.
* Open-end mutual funds' $12.4 trillion assets under management includes $7.7 trillion in stock funds, $1.7 trillion in bond funds, and $2.9 trillion in money market funds;
A press release regarding Manulife open-end mutual funds will follow in the days ahead.
The fund must also adhere to same SEC regulations that apply to all similarly situated open-end mutual funds," a press release said.
We find that greater equity holdings by depository institutions, private pensions, closed end funds and brokers and dealers increase NYSE turnover while greater holdings by bank-managed trusts and estates, insurers other than life insurers, open-end mutual funds and state and local governments and their pensions reduces it.
Shareholders of open-end mutual funds buy shares at net asset value (NAV), which is the market value of a fund share.

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