Legal Definitions - open-end fund

An open-end fund is a type of mutual fund that continuously offers new shares and buys back existing shares on demand. This means that the fund can grow as more investors buy shares, and shrink as investors sell their shares.

• Money-market fund: A mutual fund that invests in low-risk government securities and short-term notes.
• Value fund: A mutual fund that invests in stocks that its manager believes to be priced below their true market value.
• Global fund: A mutual fund that invests in stocks and bonds throughout the world, including the U.S.

These examples illustrate how open-end funds can invest in different types of securities and have different investment strategies. The key characteristic of an open-end fund is that it can continuously issue new shares and redeem existing shares, which allows investors to easily buy and sell their shares.