BANKING AFFAIRS

Detailed explanation-1: -Definition: Interval schemes combine the features of open-ended and close-ended funds.

Detailed explanation-2: -Interval Funds: These funds combine the features of open-ended and close-ended funds. The fund house opens the fund for buying and selling at intervals. The fund houses generally repurchase the units from the investors during the interval period if the investor wants to exit.

Detailed explanation-3: -Interval funds are a mix of open-ended and closed-ended mutual funds. Such a fund invests in equity instruments, debt instruments, or a blend of both. The units of an interval fund can be bought and sold during stipulated time intervals at the prevailing NAV and can be redeemed after the period of maturity.

Detailed explanation-4: -While open ended funds can be bought or sold anytime, the closed ended funds can be bought only during their launch and can be redeemed when the fund investment tenure is over.

Detailed explanation-5: -An interval fund is a closed-end mutual fund that doesn’t trade on an exchange and only allows investors to redeem shares periodically in limited quantities.