A Fund operated by an which raises Money from shareholders and invests in a group of Asset, in accordance with a stated set of Objective. Open-end funds raise Money by selling of the Fund to the Public, much like any other Type of company which can Sell stock in itself to the public. Mutual funds then take the Money they receive from the sale of their shares (along with any Money made from previous investments) and use it to Purchase various investment vehicles, such as , and Money market Instrument. In Return for the Money they give to the Fund when purchasing shares, receive an Position in the Fund and, in effect, in each of ITS securities. For most open-end funds, shareholders are free to Sell their shares at any time, although the price of a Share in an open-end Fund will fluctuate daily, depending upon the Performance of the securities held by the fund. Benefits of open-end funds include Diversification and professional Money management. Open-end funds Offer choice, Liquidity, and convenience, but Charge and often require a minimum investment. also called mutual fund.
