An open-end fund or open-ended fund is one which can expand or contract by issuing or cancelling units in exchange for cash. Examples are unit trusts, OEICs, SICAVs, US Mutual Funds/40 ACT and UCITS funds. Read our note – a bit about wrappers for more detail. Investors have frequent chances to deal in the fund, usually on a daily basis but other frequencies are common. Managers of these funds have to ensure they can fund cancellations (also called redemptions) and so have to keep cash to hand for this.
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