Open & close ended mutual funds

Open end funds

Open ended mutual funds are those mutual funds where you can enter and exit at any point in time. In other words there is no ‘Lock in period’. Mostly mutual funds are open in nature and hence you can redeem or exit at any point in time.

Close end funds

In close ended Mutual Funds, there is a lock in period, the invested amount cannot be redeemed till the lock in period is over. Lock-in-period is the minimum time period till which the invested amount hast to be kept.

Interval funds

Interval funds are those funds that have the features of open-ended and close-ended funds. Interval funds are generally close ended funds but can be purchased and sold during certain intervals specified by the fund house. The intervals are usually monthly, quarterly, semiannually or annually. Very few mutual fund schemes are launched as interval funds.