Open-ended funds do not have a fixed maturity whereas close-ended schemes have a stipulated maturity period. In an Open-ended Scheme, the investors can purchase and redeem units anytime. New investors can join this kind of scheme by directly applying to the mutual fund at applicable NAV-related prices, whereas in the case of Close-ended Schemes new investors can either invest at the time of the Initial Issue and thereafter units can be bought or sold from the stock exchange where it is listed. As a result, the number of units in an Open-ended Scheme may keep fluctuating on a daily basis, while this is not the case in Close-ended Schemes.
