Open-ended fund

Open-ended fund – A collective investment scheme with an unlimited number of shares. There are no restrictions on the amount of shares the fund may issue. It can issue and redeem shares at any time since investors purchase shares from the fund itself than from existing shareholders. If demand is high, the fund will continue to issue shares — there is no limit to the fund size, and the price of the units does not rise and fall in response to demand. Open-end funds also buy back shares when investors wish to sell. The value at which shares are bought or sold is directly linked to the fund’s asset-value-nav/" data-gt-translate-attributes='[{"attribute":"data-cmtooltip", "format":"html"}]' tabindex='0' role='link'>Net Asset Value (NAV). Shares in open-ended funds are purchased from the fund itself or one of its agents; they are not traded on exchanges.