Open-end fund is one of the basic forms of fund operation in the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back their own fund shares at any time according to the requirements of investors.
Open-end funds have become the mainstream of the international fund market. More than 90% of the fund markets in the United States, Britain, Hongkong and Taiwan Province Province are open-end funds. Compared with closed-end funds, open-end funds have great advantages in incentive and restraint mechanism, liquidity, transparency and investment convenience.
From the history of fund development, open-end funds have generally experienced four stages of development:
● Generation stage. Since 1868, the first public investment fund-trust fund for foreign and colonial governments-has been in Britain.
Until Boston established the world's first corporate open-end fund-Massachusetts Investment Trust in 1924.
● Primary development stage. 1924 to 1940, the American investment company law was promulgated.
● Steady growth stage. 1940 to the 1980s
● Rapid development stage. Since 1980s, global funds have developed rapidly.