NISM-Series V-A: Mutual Fund Certification Exam Notes
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Investors can sell their units to the scheme through a re-purchase transaction at re-purchase price, which is linked to NAV.
Close-Ended Schemes have a stipulated maturity period are called close ended schemes. Investors can invest in the scheme at the time of the initial issue and thereafter you can buy or sell the units of the scheme on the stock exchanges where they are listed.
Interval Schemes combine the features of open-ended and close-ended schemes. The periods when an interval scheme becomes open-ended, are called 'transaction periods'; the period between the close of a transaction period, and the opening of the next transaction period is called 'interval period'.
Minimum duration of transaction period is 2 days, and minimum duration of interval period is 15 days. Scheme should be compulsorily listed in Stock Exchange during the interval period.
Actively managed funds are funds where the fund manager has the flexibility to choose the investment portfolio, within the broad parameters of the investment objective of the scheme. Since this increases the role of the fund manager, the expenses for running the fund turn out to be higher.
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