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

April 26, 2017close-ended open-ended Schemes

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

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An open-ended scheme receives subscription and also redeems on regular basis. It does not have a maturity period. A close-ended scheme, on the other hand, receives subscription only during NFO period. After NFO closure, close-ended scheme can only redeem at periodic intervals, not accept fresh subscriptions. The duration of maturity for a close-ended scheme is specified in days/months/years in offer document of the scheme.