What is Open Ended Mutual Fund?
5paisa Research Team
Last Updated: 28 Apr, 2025 04:39 PM IST

Content
- Introduction
- What are Open Ended Funds?
- How Do Open Ended Funds Work?
- Advantages and Disadvantages of Open Ended Funds
- List of Open Ended Funds in India
- Key Differences between Open Ended Funds and Close Ended Funds
- Types of Investments in Open Ended Funds
- How to Evaluate Open Ended Funds before Investing?
- Understanding the Role of Premiums and Discounts in Open Ended Funds
- What Are The Things To Know Before You Trade In Equity?
- Conclusion
Introduction
Open ended funds are always available for investment and redemption, hence the name. In India, open ended funds are the most frequent type of mutual fund investing. These funds have no lock-in time or maturities, thus they are available indefinitely.
Dive into the detailed narration to understand the benefits of open-ended funds. So, what is open ended mutual fund?
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Frequently Asked Questions
One can invest in an open ended mutual fund during NFO or New Fund Offer period or when the NFO closes. While investing during NFO, you get allotted units depending on face value or par value. While investing after an NFO subscription, you can be allotted units depending on prevailing NAVs.
Yes, investing in an open ended mutual fund offers security compared to closed-end funds. Since management continually adjusts holding to suit investor demands, the funds' fees are higher than any other fund.