Investing in open-ended funds provides investors with the flexibility to invest at any time. These funds are known to be more liquid than their closed-ended counterparts, making them easier to buy and sell. Additionally, open-ended funds typically have higher daily trading volumes compared to closed-ended funds.

With open-ended funds, investors can buy and sell shares throughout the trading day at the current net asset value (NAV). This allows investors to easily enter and exit positions in response to market fluctuations.

Open-ended funds offer the potential to invest in a wider range of assets, from stocks and bonds to commodities and real estate. This makes open-ended funds a versatile investment option that can provide exposure to a diverse range of markets and industries.

Closed-ended funds come with a predetermined maturity date, which means that they operate for a fixed period. These funds are available for subscription during a specific period at the time of their initial launch. They are then listed on a recognized stock exchange, offering investors a secondary market to trade their shares.

Due to their fixed structure, closed-ended funds have a limited number of shares available for purchase, which can impact their prices based on supply and demand. This can sometimes result in the market price deviating from the actual net asset value of the fund’s underlying assets.

Closed-ended funds offer investors a unique investment option, but investors should carefully evaluate the fund’s objectives, structure, and liquidity before making any investment decisions.

Interval funds are a type of investment vehicle that permits investors to purchase and redeem shares only during specified transaction periods, or intervals. These transaction periods have to be for a minimum of two days, and there should be a gap of at least 15 days between two intervals.

Furthermore, units of interval schemes are listed on the stock exchanges, which provides investors with a secondary market to trade their shares. This also means that the market price of the shares may differ from the actual net asset value of the underlying assets.

Interval funds provide investors with a unique investment option that offers both flexibility and transparency. However, it’s essential to evaluate the fund’s objectives, structure, and liquidity before making any investment decisions.

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