Mutual funds can be categorized into three distinct types: open-ended, closed-ended, and interval funds. Open-ended mutual funds stand out as the most prevalent and favored choice among investors. This discussion delves into open-ended mutual funds by exploring the various types available in India, along with their advantages and more.

Generally, when individuals mention mutual funds, they are typically referring to open-ended ones. Unlike closed-ended funds, open-ended fund units are not listed on stock exchanges, and there is no cap on the quantity of units that can be issued by the fund.

Investors have the flexibility to buy or redeem units directly from the fund house on any business day at the prevailing Net Asset Value (NAV) of the scheme.

The NAV is calculated based on the performance of the fund's underlying securities, and these schemes do not come with a fixed maturity period.