Mutual Fund Schemes

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 September 2010 Hello Experts

Pls explain the meaning of the terms
'Open ended ' and 'closed ended' What is the difference ?

in Mutual Fund units

Cheers

28 September 2010 Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units at NAV-related prices from and to the mutual fund on any business day.

There is no cap on the amount you can buy from the fund and the unit capital can keep growing.

Any time entry & exit option.

Close ended schemes

Close-ended schemes have fixed maturity periods.

Investors can buy into these funds during the period when these funds are open in the initial issue.

30 September 2010 moreover closed ended funds r 4 some specified period of time like 3-5 years where as open ended funds r continusly traded in d open market.




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