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.

Mutual Fund Structure on WebNotes

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

Open-ended schemes

Definition