Fund Structure & Regulation
Open-Ended Fund
Definition
What is Open-Ended Fund?
A fund that can create or cancel units as investors subscribe and redeem.
Example in practice
How This Looks in Practice
A new $500,000 subscriptionThe process of buying new units in a fund by submitting money and a valid instruction. causes the fund to issue units at the applicable dealing priceThe price applied to a subscription, redemption, or switch in a fund..
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Related Terms
Fund Structure & Regulation
Collective Investment Scheme
A regulated arrangement that pools investors' money for investment according to a common objective.
Fund Structure & RegulationClosed-Ended Fund
A fund with a relatively fixed number of units that investors usually trade with one another.
Fund Structure & RegulationSecurities Regulator
A public authority responsible for regulating a securities market.
Portfolio MetricsAsset Allocation
The percentage of a portfolio invested across asset classes such as cash, bonds, shares, and property.