Open-end Investment Funds
Official definition
This industry comprises legal entities (i.e., open-end investment funds) organized to pool assets that consist of securities or other financial instruments. Shares in these pools are offered to the public in an initial offering with additional shares offered continuously and perpetually and redeemed at a specific price determined by the net asset value.
Source: US Census Bureau, 2017 NAICS Definitions. Public domain.
Illustrative examples
- Investment funds, open-ended
- Money market mutual funds, open-ended
Which code does this activity belong in?
NAICS 525910 covers legal entities organized as open-end investment funds that pool assets in securities or financial instruments, with shares continuously offered to and redeemed by the public at prices based on net asset value. The distinction from Trusts, Estates, and Agency Accounts lies in the continuous public offering and redemption mechanism; trusts and estates typically serve specific beneficiaries rather than the general public with perpetual share offerings. Other Financial Vehicles covers alternative pooling structures that do not operate as open-end funds with these characteristics.