what impact do investor redemptions have on an open end fund 
investor redemptions can lead to the fund selling assets to meet withdrawal demands which may affect the fund s composition and performance the bottom lineopen end funds are a popular choice for investors seeking diversification and flexibility they allow for unlimited shares and are priced in relation to the nav the nav is calculated only at the close of trading each day for open end mutual funds while they offer significant advantages such as liquidity and a wide range of investment options potential drawbacks include management fees and the impact of redemptions on the fund s performance 