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FAQs

Mutual Funds - What is the difference between an open ended and close ended scheme?

Open-ended schemes can issue and redeem units any time during the life of the scheme. Closed-ended funds cannot issue new units except through a bonus or rights issue. Hence, unit capital of open-ended funds can fluctuate daily but that is not the case with closed-ended schemes. Further, new investors to an open-ended fund can join the scheme by directly applying to the mutual fund at applicable prevailing NAV. In the case of close-ended schemes, new investors can buy units only from the secondary market.

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