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 ?
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.
Commencing, on July 1, 2004, the Fund converted to an open-ended mutual fund and was renamed the Julius Baer Global Equity Fund ("Global Equity Fund").
an open-ended mutual fund company incorporated on March 21, 1997, under the laws of Bermuda.
6 billion closed-end fund; The Salomon Brothers Investors Fund, a $666 million open-ended mutual fund; and The Salomon Brothers Capital Fund, a $185 million dollar open-ended mutual fund.
Using Newfound Research's proprietary tactical models, the first strategies managed by Newfound Investments will be three open-ended mutual funds called the Virtus Disciplined funds.
Traditionally the market leader in Saudi open-ended mutual funds, NCB Capital manages 26 Sharia-compliant and three conventional open-ended mutual funds as well as four closed mutual funds covering regional equity, global equity, money markets and Sukuk, making the company one of the world's largest Sharia-compliant mutual fund managers.
Erikson will oversee the team that manages the firm's high yield assets from institutional separate accounts and sub-advisory relationships to Evergreen High Yield Bond, Evergreen Select High Yield Bond and Evergreen Strategic Income Funds, all open-ended mutual funds.
In September 2000, KK Tse was invited to chair a committee commissioned by the China Securities Regulatory Commission (CSRC) to make recommendations for the launch of open-ended mutual funds in China.
State Street will also advise ICBC's custody department to service the launch of open-ended mutual funds, including process review, IT support and relevant training.
However, it does not apply to open-ended mutual funds.
The Bank is so far the only custodian bank providing services for Polish open-ended mutual funds (Pioneer funds).