Close-Ended Schemes

Investors can buy units in Close-Ended Mutual Fund schemes from the fund house only during the NFO (New Fund Offer) period.

Neither can new investors enter a close-ended scheme, nor can existing investors exit the scheme until its maturity. However, for providing interim liquidity to investors, the scheme is listed on a stock exchange post NFO where its units can be traded. The number of outstanding units of a close-ended scheme does not change during buying and selling through the exchange. The units may sell at a premium or discount to the NAV of the fund depending on market conditions, investors’ expectations of the future performance of the fund and demand and supply of units of the fund.