Define Open-Ended Schemes?

Answer 1

"An open-end(ed) fund is a collective investment which can issue and redeem shares at any time. An investor can purchase shares in such funds directly from the mutual fund company, or through a brokerage house."

refer to : http://en.wikipedia.org/wiki/Open-end_fund

The important feature of such scheme is that the corpus of the fund is not fixed and hence may vary. The size of the fund, in my opinion, has a bearing on its efficiency.

Answer 2

The term Open-Ended schemes used in the case of mutual funds.

Shares which are issued by mutual fund will be with a lock in period (restricted to sale open for a specific period only) or not.

In such situation shares cannot be sold open and after lock in period the shares can be traded in open market, and enjoy market price appreciation.

The lock in period will be specified in the prospects at the time of share issue. These schemes are called open ended .

In some cases there will no specifications regarding sale or open date, will be open to sale from the allotment date.

But some cases shares have full restriction to open sale is called closed-ended schemes. These shares cannot be traded in open market. In this case a maturity value may be fixed for these schemes.

Answer 3

An open ended scheme is one where one can enter and get out since they are traded on the stock exchanges in US and they involve stocks and bonds. They are priced by the NAV the net asset value. In closed ended funds you cannot trade it on the exchanges. They involve investments in immovables like real estate, gold etc;

Answer 4

Yes sir. I obey.