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Open Ended Mutual Fund

Open ended mutual fund is that type of mutual fund which is most popular in US and other developed countries. It means, a mutual fund in which a investor can invest up to maximum limit. He can buy or sell the share of this mutual fund without any restriction. Almost all the collective investment schemes are open ended mutual funds. Both investors and fund manager gets benefit from open ended mutual fund because acquired shares can be redeemed by selling it in market.

Some days ago, I had defined mutual fund and I explained that money collected through mutual fund  is further invested in shares and bonds under collective investment scheme. So, open ended mutual fund's share is not equity share but part of this fund and which can be purchased and sale on its only net asset value at any time and at any level. We can not buy or sell it on premium or discount like closed ended mutual fund.

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Accounting Education: Open Ended Mutual Fund
Open Ended Mutual Fund
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Accounting Education
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