Open-End Management Company

“Open-end management company” is just a fancy term for “mutual fund company.” It’s like calling pigs in a blanket an hors d’oeuvre, or referring to a stay-at-home mom as a domestic engineer. Sure, it’s technically, legally correct, but it’s much more common to hear open-ended management companies referred to as mutual fund companies.

Open-end management companies buy, sell, and manage open-end mutual funds. They usually have several different types and classes of funds, all of which are professionally tracked and managed. That’s probably not surprising to anyone, but this might be: most open-end management companies also handle ETFs. Wow, maybe open-end management companies really are fancy. Kind of like the sodium chloride on our allumette-cut deep-fried potatoes.