|An open-ended fund is a mutual fund which means it is a pool of assets contributed by many investors pursuing the same, common investment objective.|
|Open-ended fund is managed by professional fund management companies and regulated by special laws to ensure that normal investors can benefit from pooling their savings with other investors.|
|An open-ended fund is an open fund meaning it there is no fixed investment duration or fixed number of investors.|
|An open-ended fund allows the purchase and sale of units in its pool of assets at the Net Asset Value (“NAV”) on any trading day; this ensures that all investors, existing and new, are treated equally and fairly.|
Video What is Open-ended funds?
|Investors do not have specialized financial knowledge
Investors are busy and have no time to analyze the markets every day
Investors want to invest in long term
Investors prefer the discipline and convenience
Investors want to diversify in investment
|Bond and equity are two popular types of open-ended fund.
There are many different kinds of open-ended funds and vary according to the securities and markets they invest in.
The following graph describes the fact that each class and sector have own risks and reward.
Open-ended funds are quite new to Vietnam, but have been in existence in other markets for many years. In America, around half of households are investing in open-ended funds.