Question

Please compare the Open-End versus Closed-End Mutual Funds (250 words limit)

Answer 1

Comparision Basis	Open ended Mutual Fund	Close ended Mutual Fund
simple Meaning	An open ended Mutual fund is such type of mutual fund, whose units you can buy at any time	A close ended Mutual fund is such type of Mutual fund whose units you can buy on a particular time only
New Units	This type of Mutual fund distributes the new units to the investors on a constant basis.	under Close ended Mutual fund the units are distributed for a particular and restricted period only
sell of units	In open ended mutual funds the investors can reedem or sell their units at any time by paying exit load	here the Units are locked in for the maturity time. Investor cannot sell his units before maturity time
maturity	These type of mutual funds do not have any fixed maturity period	units in these funds have some fixed maturity period.
Listing on stock exchange	They are nit listed on stock exchanges	thy are listed and traded in the stock exchange
Price determination or Pricing of Units	Prise per unit = NAV of total fund / Number of units outstanding	here the price of the units are determinedby the demad and supply mechanism. more demand, more will be the price
Limit on units issue	there is no limit on the number of shares issued	there is a fixed limit on the number of share or units to be issued
Lock in period	There is no lock in period. Investors can buy in nad buy out at any point of time	there is lock in period.