Open-End Fund Law and Legal Definition
Open end fund is a mutual fund that continually offers new shares and buys back existing shares on demand. It is a type of mutual fund where there are no restrictions on the amount of shares the fund will issue. It is a collective investment scheme which can issue and redeem shares at any time. Open-end fund has no limit to the number of shares it can issue. If demand is high enough, the fund will continue to issue shares no matter how many investors are there. Open-end fund also buy back shares when investors wish to sell. An open end fund will continue to grow as more shareholders invest since it does not have a fixed number of shares outstanding.