Multiple choice

An investment plan of a mutual fund which is available for subscription and repurchase on a continue basis, is called

  1. close-ended scheme

  2. balanced scheme

  3. open-ended scheme

  4. growth scheme
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Open-ended fund is a collective investment scheme which can issue and redeem shares at any time. An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period.

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