Mutual funds can be structured into three types: open-ended, closed-ended, and interval funds. Among these, open-ended mutual funds are the most common and popular among investors. In this discussion, we will explore open-ended mutual funds, examining the different types available in India, their benefits, and much more.

It's safe to say that when people refer to mutual funds, they typically mean open-ended mutual funds. Unlike closed-ended funds, the units of open-ended funds are not traded on the stock exchange, and there is no limit on the number of units the fund can issue.

Investors can purchase or redeem units directly from the fund house on any working day at the existing Net Asset Value (NAV) of the scheme.

The NAV is determined by the performance of the fund's underlying securities. These schemes do not have a maturity period.