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Investment
Open-End Mutual Fund
A mutual fund that continuously issues and redeems shares at the fund’s net asset value (NAV). Investors can buy or sell shares directly from the fund at any time.
Open-end funds offer liquidity and professional management. They diversify across many securities to spread risk and can be actively or passively managed. Investors benefit from professional oversight while retaining the flexibility to enter or exit at the current NAV.
Open-end mutual funds are like a buffet — you can come and go, taking as much as you want whenever you like, and the kitchen keeps restocking.
Real world: The Vanguard 500 Index Fund is an open-end fund, allowing investors to purchase shares at the NAV daily.
💡 Open-end mutual funds give investors continuous access to professionally managed, diversified portfolios.