What is Open-End Fund?
A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell.
Investopedia Says...
The majority of mutual funds are open-end. By continuously selling and buying back fund shares, these funds provide investors with a very useful and convenient investing vehicle.
It should be noted that when a fund's investment manager(s) determine that a fund's total assets have become too large to effectively execute its stated objective, the fund will be closed to new investors and in extreme cases, be closed to new investment by existing fund investors.
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Wednesday, March 19, 2008
Open-End Fund ?
Posted by Mutual Funds Team at 11:27 AM
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1 Comment:
In India majority of mutual funds are open-ended. Fund that float open ended schemes can sell as many units as investors demand. These do not have a fixed maturity period.
Investors can buy or sell units at NAV-related prices from and to the mutual fund on any business day. Most people prefer open-ended mutual funds because they offer liquidity. Such funds can issue and redeem units any time during the life of a scheme.
Hence, unit capital of open ended funds can fluctuate on a daily basis.
For more info, refer
http://www.sundarambnpparibas.in/
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