An open-ended mutual fund is a type of mutual fund scheme that allows investors to buy and redeem units at any time. Examples include equity mutual funds and debt mutual funds.
These funds generally do not trade on stock exchanges like shares.
Investors usually do not need a demat account to invest in them.
The price of each unit is represented by the Net Asset Value (NAV), which is calculated daily based on the value of the fund’s underlying assets.
Open-ended mutual funds generally offer higher liquidity compared to close-ended mutual funds because investors can buy or redeem units directly through the Asset Management Company (AMC), subject to the terms and rules of the scheme.
Investors can start a SIP (Systematic Investment Plan) or make lump sum investments whenever they want, depending on the scheme’s investment rules.
You can learn more about mutual funds, SIPs, investing concepts, and portfolio-building strategies through the Mutual Fund Learning Hub.
You can also read my real-life investing journey on how I turned a ₹500 SIP into a ₹1 crore portfolio over 11 years through disciplined investing and consistency.
Important Links:
1. What is a fund of funds (FOF)?
