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sajay kumar

sajay kumar (Querist)
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08 December 2010 FRIENDS PLEASE TELL ME
what is close ended, open ended scheeme

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 December 2010 * Open-ended fund/scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

* Close-ended fund/scheme

A close-ended fund or scheme has a stipulated maturity period eg five and seven years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor ie either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 December 2010 https://www.investorfirst.in/investment_guides/mutual_funds/types_of_mutual_funds/open_or_close_ended_schemes.php

Also see above link.

sajay kumar

sajay kumar (Querist)
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09 December 2010 thank u sooooooo much for your nice explanation

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