Finance in India Finance & Investment, India iloveindia.comFinance in IndiaFinance & InvestmentInvesting in IndiaBombay Stock Exchange


Latest in Gadgets & Gizmos at Lifestyle Lounge




Read Definition of Closed End Mutual Funds
Home : Finance : Mutual Funds : Closed-End Mutual Funds

Closed-End Mutual Funds

A closed-end mutual fund has a set number of shares issued to the public through an initial public offering. These funds have a stipulated maturity period generally ranging from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed.

Once underwritten, closed-end funds trade on stock exchanges like stocks or bonds. The market price of closed-end funds is determined by supply and demand and not by net-asset value (NAV), as is the case in open-end funds. Usually closed mutual funds trade at discounts to their underlying asset value.














Finance

Copyright ©  iloveindia.com   All Rights Reserved.