Multiple choice

Units for an open-ended mutual fund are bought from

  1. NSE

  2. AMFI

  3. SEBI

  4. Agencies appointed by the AMC

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

Open-ended mutual fund units are issued and redeemed directly by the Asset Management Company (AMC). Investors buy units from and sell them back to the AMC at the prevailing Net Asset Value (NAV). The AMC appoints authorized agencies to handle these transactions on its behalf.