Ch.5 · NFO Process and Rules · medium
What is the 'lock-in' period for close-ended mutual fund schemes?
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EXPLANATION
Close-ended schemes have a defined maturity period (e.g., 3 years, 5 years) during which investors cannot directly redeem with the AMC. To provide liquidity, SEBI mandates that close-ended scheme units must be listed on a recognized stock exchange. Investors can sell units on the exchange, though they may trade at a discount to NAV.
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