In terms of mutual funds, what does "on demand" imply in an open-end mutual fund context?

In the context of open-end mutual funds, "on demand" refers to the ability of investors to buy and sell shares whenever they choose, at the net asset value (NAV) of the fund. This flexibility is a key characteristic of open-end mutual funds, allowing investors to enter or exit their investments at any time based on their financial objectives or market conditions.

The NAV is calculated at the end of each trading day, reflecting the total value of the fund's portfolio divided by the number of shares outstanding. Because shares are bought and sold at this NAV, investors do not have to deal with market price fluctuations that can occur with other types of investments, such as closed-end funds or stocks, which trade on exchanges throughout the day.

This feature of open-end mutual funds provides a significant advantage by offering liquidity, as investors can respond promptly to changes in their investment needs without waiting for specific intervals or market hours.