• An open-ended fund is one which is usually available from a Mutual Fund on the ongoing basis, i. e. an investor can buy or sell them as and when they intend to, at a NAV based price.
• As investors buy and sell units of a particular open-ended scheme, the number of units issued also changes every day and so changes the value of the scheme’s portfolio.
• So, the NAV also changes on a daily basis.
• In India, fund houses can sell any number of units of a particular scheme, but at times fund houses restrict selling additional units of a scheme for some time.