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Open ended mutual funds

Updated: 9/15/2023
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the supply of shares in the funds is not fixed but can increase or decrease daily with purchases and redemptions of shares.

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Q: Open ended mutual funds
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Can you draw funds from a Mutal Fund?

If it is an open ended mutual fund - Yes, you can draw the funds


What is different between open ended and closed ended mutal fund?

An open ended mutual fund is one where the investor can redeem his investment any time he feels appropriate whereas a close ended mutual fund is one where the investor has to wait until the lock in period is over to redeem his investment. Open ended funds are more liquid can close ended funds because of this.


Is mutual fund liquid asset?

Yes. open ended mutual funds can be considered liquid. You can convert it to cash within a couple of days.


Which is best open ended or closed ended mutual funds?

Both have their own merits and demerits. Open ended funds are good in a way that, if you know that a mutual fund is performing exceptionally well, you can go ahead and invest in them whereas in case of close ended funds you cannot do that. At the same time, close ended funds are good in a way that, you don't have to worry about fresh investments or frequent withdrawals from the investors. The fund manager can think of a long term plan to make a profit with his investments and stick to them, whereas in case of an open ended fund the fund manager has to take into account fresh investments and redemptions during his investment strategy and that may affect the returns of the funds.


What are mutual funds in regards to retirement savings?

Mutual funds are shared investments that are open to most people. In regards to retirement savings, one can use mutual funds to gain a steady supply of money.

Related questions

Are open ended mutual funds listed on a stock exchange?

Both Open & Close ended Mutual Funds are not listed on a stock exchange. Only Exchange Traded Funds and stocks are listed in a stock exchange


Can you draw funds from a Mutal Fund?

If it is an open ended mutual fund - Yes, you can draw the funds


What is different between open ended and closed ended mutal fund?

An open ended mutual fund is one where the investor can redeem his investment any time he feels appropriate whereas a close ended mutual fund is one where the investor has to wait until the lock in period is over to redeem his investment. Open ended funds are more liquid can close ended funds because of this.


Is mutual fund liquid asset?

Yes. open ended mutual funds can be considered liquid. You can convert it to cash within a couple of days.


Which is best open ended or closed ended mutual funds?

Both have their own merits and demerits. Open ended funds are good in a way that, if you know that a mutual fund is performing exceptionally well, you can go ahead and invest in them whereas in case of close ended funds you cannot do that. At the same time, close ended funds are good in a way that, you don't have to worry about fresh investments or frequent withdrawals from the investors. The fund manager can think of a long term plan to make a profit with his investments and stick to them, whereas in case of an open ended fund the fund manager has to take into account fresh investments and redemptions during his investment strategy and that may affect the returns of the funds.


Are open-end funds the same as mutual funds?

Often referred to as the mutual fund industry, the open-end fund industry comprises about 95 percent of the mutual fund market


What are mutual funds in regards to retirement savings?

Mutual funds are shared investments that are open to most people. In regards to retirement savings, one can use mutual funds to gain a steady supply of money.


How much did U.S. open-end mutual funds control in 1993?

U.S. open-end mutual funds controlled more than $1.7 trillion in assets by 1993


Are mutual funds liquid?

It depends on the type of fund. Open ended funds are liquid because the investor can always surrender his investments at any time and redeem them as cash in 1-3 days. Close ended funds are not liquid because the investor cannot redeem his investment until the investment period is over.


Mutual fund can be treated liquid asset?

The answer is a yes and a no. Investment in open ended mutual funds can be considered pretty liquid because you can surrender your investment to the fund house and redeem them any time you want. Your money would be paid off in 2-3 business days and hence they are pretty liquid Investments in close ended mutual funds are not liquid because you cannot redeem until the investment end date


Can you explain what mutual fund investing is?

A mutual fund is a share or fund that is held by more than one holder yet managed by professionals. They pool money from many different investors, and unlike most funds are open ended.


How many mutual funds are there?

There are about 7000 mutual funds (specifically "open end mutual funds") in the U.S. today. These fund have a variety of share classes, such as "Class A" or "Investor Class", which expands the total number of share offerings out to about 25,000. Source: NewRiver, Inc.