BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It has an option to invest in any kind of security.
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It has units available for sale and repurchase at all times.
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It does not have a NAV.
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It has fixed fund size.
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Detailed explanation-1: -Which of the following best define an open-funded mutual fund? Answer: [B] It has units available for sale and repurchase at all times. Notes: Open-end fund is a fund that can issue and redeem shares at any time.
Detailed explanation-2: -What are open ended funds? Open ended funds are always open to investment and redemptions, hence, the name open ended funds. Open ended funds are the most common form of investment in mutual funds in India. These funds do not have any lock-in period or maturities; therefore, it is open perennially.
Detailed explanation-3: -What is Closed-ended funds. Definition: The unit capital of closed-ended funds is fixed and they sell a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over.
Detailed explanation-4: -Answer» B. It has units available for sale and repurchase at all times.
Detailed explanation-5: -Some mutual funds, hedge funds, and exchange-traded funds (ETFs) are types of open-end funds. These are more common than their counterpart, closed-end funds, and are the bulwark of the investment options in company-sponsored retirement plans, such as a 401(k).