Mutual Funds close-interval-open-ended

Close-ended, Interval, and Open-ended schemes

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Indian mutual funds are categorised by trading structure into open-ended, close-ended, and interval schemes. The classification refers to how investors can transact (subscribe / redeem) with the scheme: open-ended schemes are continuously open, close-ended schemes are fixed-tenure with limited subscription windows, and interval schemes are open at periodic intervals.

Open-ended

  • Continuous subscription and redemption.
  • T+1 to T+3 settlement per scheme category.
  • Most Indian MF schemes are open-ended.
  • Daily NAV.

Close-ended

  • Fixed tenure (1 to 5 years typical).
  • Subscription only during NFO.
  • Redemption only at maturity (or via secondary-market exchange listing).
  • Lower TER typically.
  • Examples: Fixed Maturity Plans (FMPs).

Interval

  • Periodic open windows for subscription / redemption (monthly / quarterly).
  • In between, scheme is closed.
  • Less common than open-ended or close-ended.

Use cases

Open-ended (most common)

  • Standard equity, debt, hybrid schemes.
  • SIP / SWP / STP capability.

Close-ended

  • Specific tenor-matched debt strategies (FMPs).
  • Specialised equity strategies with fixed-period theme.

Interval

  • Niche operational rationale.

SEBI framework

Per SEBI (Mutual Funds) Regulations 1996 , all three structures are permitted with specific operational requirements.

See also

External references

References

  1. SEBI (Mutual Funds) Regulations 1996.
  2. AMFI Best Practice Guidelines.

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