Open-end funds are also called * * * mutual funds abroad, which are isomorphic with closed-end funds and form two modes of fund operation. Open-end fund refers to a fund operation mode in which fund sponsors can sell fund shares or shares to investors at any time according to their needs, and can redeem the fund shares or shares issued at the request of investors when setting up the fund. 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 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 fund shares at any time at the request of investors.
At present, the open-end fund has 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:
1, with strong market selectivity. If the performance of the fund is excellent, the capital flow of investors buying the fund will lead to the increase of the fund assets. However, if the fund is poorly managed, investors will withdraw funds by redeeming the fund, resulting in a decrease in fund assets. Because the overall operating cost of large-scale funds is not higher than that of small-scale funds, large-scale funds have better performance, more people are willing to buy, and the scale is larger. This mechanism of survival of the fittest has formed a direct incentive and constraint for fund managers, which fully embodies a good market choice;
2. Good liquidity. Fund managers must maintain sufficient liquidity of fund assets to cope with possible redemption, and will not concentrate on holding a large number of assets that are difficult to realize, thus reducing the liquidity risk of the fund;
3. High transparency. Under the necessary information disclosure, open-end funds generally publish their net assets every day, which accurately reflects the ability of fund managers to operate and control funds in the market at any time, and is particularly attractive to small investors with insufficient ability, funds and experience;
4. Convenient investment. It is very convenient for investors to purchase and redeem funds at all sales places at any time. A good incentive and restraint mechanism urges fund managers to pay more attention to integrity and reputation, emphasizing long-term, stable and excellent investment strategies and excellent customer service. As a kind of financial innovation, the introduction of open-end fund can better mobilize investors' investment enthusiasm, and the sales channels include bank outlets, which can attract some new savings funds into the securities market, improve the investor structure and play a role in stabilizing and developing the market.