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What are open-ended and closed-ended mutual funds?

April 26, 2017closed-ended Mutual funds open-ended

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What are open-ended and closed-ended mutual funds?

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In an open-ended mutual fund there are no limits on the total size of the corpus. Investors are permitted to enter and exit the open-ended mutual fund at any point of time at a price that is linked to the net asset value (NAV). In case of closed-ended funds, the total size of the corpus is limited by the size of the initial offer.