I have restrictions on what type of securities I may buy and sell. However, I'm free to trade open-ended mutual funds. I looked at the Investopida definition, and I see that anything that I can freely buy more of is open. This leads me to a few questions. First, isn't any fund that I do not own and can purchase open? Second, how can I tell if a fund that I do own is still open?

Edit: I am in the US if it matters.

  • Is this in the US, UK or somewhere else? Different countries may have different rules. For example, I'm in Canada.
    – JB King
    Sep 2, 2014 at 22:27
  • @JBKing In US, but I would think that being an open-ended fund would be the same in any country Sep 2, 2014 at 22:31

1 Answer 1


Open-end funds in the US would generally have a 5 letter ticker and be registered under the "Investment Company Act" that makes them companies unto themselves with varying amounts of shares. There can be share classes for various open-end funds with varying fees and minimums and I doubt that every country has the same details as the ICA which is what governs funds in the US.

Most big "fund families" will have a variety of open-end funds though lots of discount brokerage firms may be known as "fund supermarkets" because of their selection of funds outside of a family, e.g. Schwab would be more of a supermarket as it was originally known more for being a brokerage firm while Vanguard or Fidelity would be a couple of fund families though both do have brokerage arms. This would be the classic way to buy the funds and sites like Morningstar can provide research on funds if you want such a reference.

There can be other funds that will trade on exchanges known as "Closed-End Funds" or "Exchange-Traded Funds" where the former have fixed number of shares and a fixed liquidation date while the latter can have flexible number of shares but can be either "Unit Investment Trust" or a mutual fund structure I believe as Vanguard's ETFs do use an open-end fund structure to some degree.

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