Exploring 3 Key Types of Open-Ended Mutual Funds in India

Mutual funds are broadly classified into three types: open-ended, closed-ended, and interval funds. Among these, open-ended mutual funds are the most popular and preferred by investors. This article explores the various types of open-ended mutual funds available in India, along with their benefits and other relevant details.

Typically, when people discuss mutual funds, they are referring to open-ended funds. Unlike closed-ended funds, open-ended fund units are not traded on stock exchanges, and the number of units that a fund can issue is unlimited.

Investors enjoy the flexibility of purchasing or redeeming units directly from the fund house on any business day at the current Net Asset Value (NAV) of the scheme.

The NAV is determined based on the performance of the fund's underlying securities, and these schemes have no fixed maturity date.