open-end fund
- noun
- /ˈoʊpən ɛnd fʌnd/
- Specialized
:
fondo abierto
- Investors appreciate that open-end funds offer the opportunity to redeem their shares on any business day at the current net asset value.
Examples
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How do you pitch an open-ended fund to a pension fund or an endowment?
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An open-end fund allows investors to buy and sell shares directly at their net asset value, making it a flexible investment option.
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Because they can continuously create new shares, open-end funds can accommodate a growing number of investors without limitations.
Synonyms
82
3.5
A way to invest money where many people put money together and experts buy many investments
A company that sells and buys back shares any time at a price based on its assets
How Liquid
- Specialized
- Specialized
1
7.2
Surface Forms
Morphology
open-end + fund
The element 'open-end' transparently suggests 'not having a fixed end' and combined with 'fund' gives a clear general sense of a fund that is continuously open for investors to enter or exit. However, the precise operational meaning (continuous issuing and redeeming of shares at net asset value) is financial and not fully predictable from the constituent words alone, so a learner may grasp the general idea but not the technical details.
Etymology
Open-end fund comes from the image of a money jar with an open end where people can put money in or take money out. That's why it means a fund that lets investors 'buy or sell shares' at any time.