Definition

Noun: A type of investment company, also known as a mutual fund, that continuously issues new shares to investors and stands ready to redeem (buy back) existing shares at their net asset value. The fund's capital is not fixed and expands or contracts based on investor purchases and redemptions.

Usage

This term is used in finance and investing to describe a specific, common structure for pooled investment vehicles. - She decided to invest her savings in a diversified open-end fund. - The key feature of an open-end fund is its liquidity, as investors can redeem shares on any business day.

Advanced Usage

• "open-end fund company": Refers to the entity that manages and operates the open-end fund.
  • The open-end fund company announced a change in its management fee structure.
• The term is often contrasted with a closed-end fund, which issues a fixed number of shares that trade on an exchange like a stock.

Variants and Related Words

• Mutual Fund (n): The most common synonym for an open-end fund in everyday language.
  • Technically, most mutual funds are structured as open-end funds.
• Open-Ended Investment Company (OEIC): A similar structure used primarily in the United Kingdom and Europe.

Synonyms

• Mutual fund
• Open-ended fund

Related Phrases

• Net Asset Value (NAV): The per-share value of the fund's assets, calculated daily, at which shares are bought and redeemed.
  • Shares of the open-end fund are bought and sold at the end-of-day Net Asset Value.
• Share Redemption: The process where the fund buys back its shares from an investor.
  • The open-end fund guarantees share redemption at the current NAV.

Noun

1. a regulated investment company with a pool of assets that regularly sells and redeems its shares