An open-end fund is a type of mutual fund that does not limit the amount of shares it issues, but rather, issues as many shares as investors are willing to buy. In addition, open-end funds also buy shares back from investors. This ease of entry and exit provides a convenient investment vehicle for investors seeking a place to invest cash yet still have liquidity. In contrast to open-end funds, closed-end funds limit the amount of shares they issue and do not buy back shares, but rather allow shareholders to trade those shares on the open market. Open-end fund shares are valued at the net asset value (NAV), which is the fund’s total asset value minus liabilities, divided by total shares outstanding. NAVs change often and are posted daily. There are many types of open-end funds. The mix of underlying assets in the fund’s portfolio determines the type. For instance, a fund may invest only in blue chip stocks. Another open-end fund may invest solely in municipal bonds. Funds that pick securities and try to outperform the market are considered actively managed funds. Other funds attempt to mimic an index, such as the Dow Jones Industrial Average. Hedge funds and exchange-traded funds are also considered to be open-end funds. Before investing in an open-end fund, it is best to read the fund’s prospectus to check for types of fees that may be charged, and review the fund’s historical performance in relation to current market conditions.