Mutual Fund Structure
What is Open-Ended Fund?
An open-ended mutual fund allows investors to buy and sell units at any time at the prevailing NAV (Net Asset Value). The fund has no fixed maturity date and continuously issues new units or redeems existing ones based on investor demand.
Formula
NAV = (Total Assets - Liabilities) ÷ Total Outstanding Units
How to Interpret
Open-ended funds offer high liquidity — you can enter or exit at any time. This makes them ideal for most retail investors who want flexibility. However, frequent redemptions can force the fund manager to hold extra cash, which may reduce returns slightly.
Typical Ranges
Most mutual funds in India (over 95%) are open-ended. Suitable for investors who value liquidity and flexibility.