Editing Open-end fund (section)

{{Short description|Collective investment scheme}}

{{more citations needed|date=September 2014}}

'''Open-end fund''' (or '''open-ended fund''') is a [[collective investment scheme]] that can issue and redeem shares at any time. An investor will generally purchase shares in the fund directly from the fund itself, rather than from the existing shareholders. The term contrasts with a [[closed-end fund]], which typically issues at the outset all the shares that it will issue, with such shares usually thereafter being tradable among investors.

Open-ended funds are available in most developed countries, but
the terminology and operating rules vary. US [[mutual fund]]s, UK [[unit trust]]s and [[Open-ended investment company|OEICs]], European [[SICAV]]s, and [[hedge fund]]s are all examples of open-ended funds.

The price at which shares in an open-ended fund are issued or can be redeemed will vary in proportion to the [[net asset value]] of the fund and so directly reflects its performance.