What is meaning of Open-ended fund

By | February 7, 2018

• 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.

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