Open-End Fund

By far most of mutual funds are open-end funds, which can issue new shares constantly in response to investor demand. (Conversely, closed-end funds have a set number of shares outstanding.) Sometimes the fund family will close these funds, both to new and current investors, when their asset size turns out to be too big to effectively make due.

Features

• Thus, open-ended funds have a hypothetically unlimited number of potential shares outstanding.
• Open-end shares don't trade on exchanges and are priced at their portfolio's net asset value (NAV) toward the end of every day.
• An open-end fund is an investment vehicle that utilizations pooled assets, which takes into account continuous new contributions and withdrawals from investors of the pool.
• A few mutual funds and exchange-traded funds are the two types of open-end funds.