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Open-ended fund

A collective investment fund which increases and decreases in size as investors enter and leave it.

A collective investment fund which increases and decreases in size as investors enter and leave it.

Open-ended funds are constantly expanding and contracting as investors move their money in and out. This means fund managers have to manage the fund to be able to meet the demands of investors who may want their money back at any time. Because of this, open-ended funds are often restricted to investing in liquid assets.

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