These funds have no limit to the number of units (or shares) they can issue. The price of the units (or shares) remains closely aligned to the NAV of the fund. Unit trusts and OEICs are open-ended funds.
A unit trust or fund in which the fund managers may change the investments in the trust without notifying the unit-holders.
A fund whose capital, and funds under management, increase or decrease in response to demand from buyers and sellers. The fund can issue new units/shares and redeem them. Unit trusts and open-ended investment companies (OEICs) are open-ended funds. Opposite of a closed-ended fund.
Open-ended funds sell their own new units to investors, stand ready to buy back their old units, and are sometimes listed on a stock exchange. Open-ended funds are so called because their capitalisation is not fixed, they issue more shares depending on how much investors want to invest (in the fund). In Malta, the words SICAV p.l.c. (a French acronym that stands for collective investment scheme with variable capital) which follows a name of a *collective investment scheme denote that the fund is open ended.
A fund which takes new investments.
The number of units in this type of fund can be increased or decreased to satisfy the demand of buyers or sellers. Unit trusts and open-ended investment companies are examples of open-ended funds.
A pooled fund which has no limits to the number of shares they can issue. The fund will sell shares to investors who wish to buy them, and will buy back shares when investors wish to sell.
Funds that do not have any fixed maturity and are continuosly open for subscription and redemption. The key features is liquidity. One can conveniently buy and sell the units held at the NAV related price.
A fund with no limit on the number of units in issue, and whose managers are allowed to create or cancel units (See Unit Trust and OEIC).
Open-ended funds are investment funds where the number of units in issue changes in line with the amount of monies invested in the fund. In the UK unit trusts are open-ended. Worldwide, open-ended funds include: US mutual funds, European UCITS and SICAVs and the majority of offshore funds. An open-ended fund can be contrasted with a closed-end fund, which has a fixed number of shares in issue.
