what are open ended & close ended schemes in mutual funds?
2007-03-22 05:47:39 · 2 answers · asked by nagesh_mahendrakar 1 in Business & Finance ➔ Investing
An open end fund can be bought and sold at any time for the NAV of the fund.
A closed end fund can not be redeemd at the NAV except for at a prespecified date. Shares of closed end funds trade on the exchanges, but they may be above or below the NAV.
2007-03-22 05:59:09 · answer #1 · answered by BosCFA 5 · 0⤊ 0⤋
Basically "open ended" are contracts/investments you purchase with the intent of holding on to them for the appreciated value over a period of time, and then selling them.
"closed ended" are usually contracts/investments that you sell first, before purchasing them. They are considered "short sales" - the intent is to sell
high with the anticipation that the value will fall and then purchasing them, to make a profit.
2007-03-22 12:55:16 · answer #2 · answered by bold4bs 4 · 0⤊ 0⤋