Open-ended schemes are those that an investor can enter and exit as per their wish. These schemes do not have a fixed maturity period. You can buy and sell units at Net Asset Value (NAV) related prices that are declared on a daily basis. Such schemes offer high liquidity.

Close-ended schemes usually have a fixed maturity period of 5–7 years. Therefore, these schemes are only open for subscription at fixed times. Units can be bought or sold when the schemes are launched and units are listed on stock exchanges. These schemes often include an exit option for the investors in the form of repurchase, wherein you can sell your units back to the MF. The Securities and Exchange Board of India stipulates that MFs provide the investor at least one of the two exit routes:

    Repurchase

    Listing on Stock Exchanges

Here, NAV prices are declared on a weekly basis.

Based on Investment Objective. While you may choose any of these to suit your investment goals, do note that with Mutual Funds, you have the facility to change these options at certain times during the investment period.