Multiple choice

A close-ended mutual fund has

  1. a fixed market value of assets under management

  2. a fixed net asset value per unit

  3. fixed unit capital and number of units

  4. a fixed number of units
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The unit capital of close-ended funds is fixed and they sell a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a close-ended fund after its NFO period is over.

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