Diffeence betweent Mutual Funds

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What is the difference between Open ended Mutual Fund Scheme and Close ended Mutual Fund Scheme
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Dear DMC, Open ended Mutual Fund Schemes refers to a scheme which is open for subscripttion (investment) on all business days i.e. you can invest and redeem in such schemes on any working day. Close ended schemes are the scheme which are not open for subscripttion on all business days rather they open for subscripttion only for a certain period of time. Generally, one can invest in an close ended scheme during the New Fund Offer (NFO) Period only after that the scheme gets closed for further subscripttion. However, investments can be redeemed during the close ended perid at the predefined intervals by the fund. Close ended schemes are floated for a fixed period of time and after that period the scheme gets closed and all distributable funds are distributed to the investors.


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