Mutual Funds can be categorized into Open-Ended Mutual Funds and Close-Ended Mutual Funds. But what is the difference between the two? Let’s find out.
1) What Are They?
What are Open-Ended Mutual Funds?
Open-Ended Mutual Funds are a category of investments that allow investors to buy and sell units at any time. Once the New Fund Offer ends, the fund starts accepting investments within a few days. So investors can invest in the units of the scheme as per the Scheme Information Document at any time.
What are Close-ended Mutual Funds?
The Securities and Exchange Board of India (SEBI) defines close-ended funds as mutual funds that have fixed maturity date or fixed tenure. These mutual funds are available for subscription for a specified period of time when the scheme is launched and can be redeemed
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