Multiple choice

A closed-end mutual fund has a fixed:

  1. Tenure

  2. Rate of return

  3. Number of distributors

  4. NAV

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A closed-end mutual fund has a fixed tenure or maturity period, unlike open-end funds which are perpetual. The fund launches with a fixed corpus, and investors can only redeem units at maturity. NAV fluctuates based on market values, returns are not guaranteed, and distributor networks can vary.