Open ended funds

In an open-ended scheme, the investor can make entry and exit at any time. Also, the capital of the fund is unlimited and the redemption period is indefinite. Open-end mutual funds must be willing to buy back their shares from their investors at the end of every business day at the net asset value (NAV) computed that day.

Most open-end funds also sell shares to the public every day; these shares are also priced at NAV. A professional investment manager supervises the portfolio, buying and selling securities as suitable.

The total investment in the fund will vary based on share purchases, share redemptions and fluctuation in market valuation. Open-end funds are the most common type of mutual fund.