Open-end fund, also known as * * * mutual fund, refers to a fund operation mode that fund sponsors can sell fund shares or shares to investors at any time according to their needs when setting up a fund, and can redeem the fund shares or shares issued to the outside world at the request of investors. Investors can buy funds through fund sales agencies, so that the assets and scale of the fund will increase accordingly, or they can sell their fund shares to the fund to recover cash, so that the assets and scale of the fund will decrease accordingly.
Open-end fund is a main type of mutual fund, which is isomorphic with closed-end fund and forms two fund operation modes. Open-end fund is one of the basic forms of fund operation in the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back their own fund shares at any time according to the requirements of investors. Open-end funds have become the mainstream of the international fund market. More than 90% of the fund markets in the United States, Britain, Hongkong and Taiwan Province Province are open-end funds. Compared with closed-end funds, open-end funds have great advantages in incentive and restraint mechanism, liquidity, transparency and investment convenience.
What are the characteristics of open-end funds?
The unique redemption mechanism of open-end funds has played an effective role in restraining fund managers. If the fund's performance is poor, investors will redeem it, resulting in a decrease in fund assets. This mechanism will encourage fund managers to continuously improve their management performance.
Open-end funds have good liquidity. Investors can apply for redemption of fund shares at any time according to their own capital needs, which meets the demand for liquidation.
Open-end funds are convenient to invest, and redemption can be operated through direct selling institutions, online trading systems or consignment banks, brokerage outlets and other places. There are also advantages in service, providing exclusive consultants through SMS, email and bills to provide investors with comprehensive and thoughtful services.