Close-ended, interval and open-ended mutual fund schemes

Mon, 18 May 2026 00:00:00 +0000

Indian mutual fund schemes are structured as open-ended, close-ended or interval based on the availability of subscription and redemption windows. The structural choice has material implications for an investor’s liquidity, the AMC’s portfolio management flexibility, and the tax treatment on exit. This article covers the three structures, their NFO-and-listing mechanics, the SEBI regulatory provisions, and the relative use cases.

Open-ended schemes

Definition

An open-ended scheme accepts subscriptions and redemptions on every business day at the applicable NAV . The scheme has no fixed maturity date; investors can enter or exit at any time subject to exit load provisions.

Close-ended mutual fund

Tue, 12 May 2026 00:00:00 +0000

A close-ended mutual fund is a category of mutual fund scheme that, under the SEBI (Mutual Funds) Regulations, 1996 , raises a fixed corpus through a one-time New Fund Offer (NFO), lists units compulsorily on a recognised stock exchange, and redeems them at a stated maturity date. Regulation 2(d) defines a close-ended scheme as a scheme of a mutual fund in which the period of maturity is specified, distinguishing it from the open-ended form defined in Regulation 2(s).

Close-Ended on WebNotes

Close-ended, interval and open-ended mutual fund schemes

Open-ended schemes

Definition

Close-ended mutual fund