Overview of open-end fund

What is a mutual fund?

A mutual funds is an investment vehicle made up of a pool of funds collected from many investors and managed by a professional fund management company for the purpose of investing in securities. Mutual funds include open-end funds, ETFs and public funds.

Key facts

40.4 trillion USD

Global mutual fund size

19.2 trillion USD

The size of US mutual funds

22% of household financial assets are held in mutual funds

Mutual funds make up about half of the assets in individual retirement accounts in the US

146 billion USD

1,531 mutual funds in Thailand

What is open-end fund ?

Open-end Fund is a type of mutual fund:

  • An investment fund invested by a number of investors for the same purpose.
  • Managed by a professional fund management company
Characteristics of the Open-end Fund:
  • There is no restriction either on the number of investors joining the fund nor the duration of the fund
  • Open-end fund allows investors to redeem the fund unit on any trading day of the fund at the price equal to the fund’s Net Asset Value per unit, therefore directly reflects the fund's performance.
  • Type of open-end fund: Open-end funds are classified according to the fund's main investment assets, including money market fund, bond fund or fixed income fund, equity fund, hybrid fund.

Who invest in open-end fund ?

  • Investors who have idle money, want to invest long term but being busy and do not have time to follow market movements.
  • Investors who would like to have professional investment management
  • Investors who are looking for a diversified portfolio that minimizes risks while maximizing returns
  • Investors who prefer a convenient and easy to follow investment

Advantage of investing in open-end fund

  • Have high expected returns in the long term
  • Managed by a professional investment management company
  • Have high liquidity and high degree of flexibility
  • Transparent, easy to invest, easy to follow
  • Diversified more than individual investment

Open-end fund vs Self-investment

Open-end fund vs Closed-end fund