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 ?
Faysal Savings Growth Fund (FFFSOF), an open-ended mutual fund, seeks maximum preservation of capital and a reasonable rate of return via investing primarily in money market and debt securities having good credit rating and liquidity.
BAAM manages about USD81bn across a diversified set of businesses such as a customised portfolio solutions business, a special situations platform, a business that purchases GP stakes in alternative asset managers, an open-ended mutual fund platform and an emerging manager seeding business.
This is an open-ended mutual fund with monthly subscription and redemptions.
4 January 2012 - Canadian open-ended mutual fund trust Boyd Group Income Fund (TSE:BYD.UN) said on Wednesday it had wrapped up its acquisition of US vehicle repair firm Master Collision Repair Inc.
I just have a hard time visualizing this concept as an open-ended mutual fund with above average "opportunity" on a risk-adjusted basis.
The fund is an open-ended mutual fund and is established as a collective investment and is registered in Bahrain; it's not registered or governed by Jordan securities commission.The initial subscription for units will commence later this week.
Faysal Balanced Growth Fund (FBGF) is an open-ended mutual fund. The units of FBGF are listed on the Karachi Stock Exchange and were initially offered to the public on April 19, 2004.
It manages a diversified set of businesses such as a customised solutions business, a special situations platform, a hedge fund seeding business, an open-ended mutual fund platform and a business that buys stakes in established alternative asset managers.
Manulife Strategic Income Opportunities Fund confirms that it will complete the previously scheduled conversion of the Fund into an open-ended mutual fund (the "Conversion") on June 28, 2013 (the "Conversion Date").
Based on its review to date, Manulife Asset Management Limited, the manager of the Fund, has concluded that the tax-advantaged character of distributions received by unitholders will cease on the expiration of the Fund s forward agreement following the Fund s distribution for the month of June 2013, which will be made payable to unitholders of record on June 26, 2013 and prior to the Fund s conversion into an open-ended mutual fund on June 28, 2013.
DMP Ltd., an open-ended mutual fund corporation, offers multiple classes of mutual fund shares, including DMP Resource Class.
During the year, 38 new open-ended mutual funds were launched while 13 funds completed their terms and matured.