open ended v/s close ended mutual funds

Could anyone please explain the difference between op. & cl. Ended funds. I’m still confused regarding the same. Thanks in advance

Closed ended fund has the total fund size constant.

So, any entry or exit is between 2 investors. So to exit, there must be someone willing to buy their part of the share.

Open ended can add to the fund size, when a new investor wants to join in. So any new investor can enter or exit at their will. They can dissolve their share by realising their fund value at the exit date, similarly, while joining can enter at NAV on that day.

Closed-end funds are closed for any new subscription and they trade in the secondary market just like shares of listed companies. They may be not very liquid and you can not return them back to the issuer.

In open-end funds, subscription is always open. You can buy and redeem the units directly from the issuer “asset management company” on NAV which is updated at the end of every business day. They are more quite liquid compared to closed-end funds.

Thanks a lot for the help

Hi everyone.

so are ETFs open-ended funds or closed-end funds?

In the CFA book, the curriculum, it says ETF and ETN are open-ended funds. A general google search shows me ETFs are closed-end funds. ETFs are closed-end funds will fit the definition of closed-end funds so I am confused.