Open-ended and closed-ended
How you get in and out
The exam tests this early, and it is easy marks once you frame it by one question: how do you get your money in and out?
This lesson teaches a concept for the NISM Series V-A exam. It is education, not financial advice.
- 1
An open-ended fund lets you buy and sell units on any business day, at that day's NAV.
- 2
A closed-ended fund raises money once, runs for a fixed term, and lists on an exchange for exits.
- 3
Most funds a retail investor meets are open-ended, so getting your money out is rarely a problem.
- 4
An interval fund is a mix: it opens for buying and selling only during set windows.
Want to add ₹2,000 next Tuesday? An open-ended fund takes it at Tuesday's NAV. A closed-ended fund would make you buy its units on the exchange instead.
Practice
🔥 0 streakReal exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.
An open-ended fund lets you buy or sell units:
A closed-ended fund is best described as one that:
An interval fund opens for transactions:
Which type do most retail investors use?
Ask the coach
PremiumStuck on this topic? Premium members ask the AI coach and get a plain-English answer, on the spot. See premium
Education for the exam, not financial advice. Answers can be wrong, so confirm figures against the workbook.