What Is Open End Fund?

Open-ended Funds

Open type

The open-end fund can be issued according to the needs of investors or redemption according to the requirements of investors.

For investors, they can ask the issuer to redeem the fund after deducting the handling fee according to the current net asset value of the fund, or to buy the fund and increase the share of the fund unit.

For example, China's first open-end fund, "Huaan innovation", issued 5 billion fund units for the first time. The establishment time was not in 2001. There was no change in the number of fund units issued for the first time, and 5 billion of the fund units would change at any time after "opening up". For example, they may be reduced due to the redemption of investors or increased by investors' purchase or selection of "dividend reinvestment".

The trading of open-end fund units in China is carried out through the direct purchase outlets or the selling outlets of the fund management companies (mainly the bank outlets) through the purchase and redemption. Investors purchase and redeem all through the counters, telephone or websites of these outlets.