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What is the difference between open ended and close-ended funds?

April 26, 2017close-ended ended funds

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What is the difference between open ended and close-ended funds?

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Open ended schemes: Open ended funds are those funds that do not have a fixed maturity period. You can buy and sell these funds just anytime. These funds offer high liquidity. Close ended schemes: In case of close ended schemes the maturity period ranges between two years to 15 years. You may buy these schemes when they are launched as initial issue or buy or sell the units when they are listed on the stock exchange. You could also sell back the units to the mutual fund company during a specified period.