In a close-ended arrangement, the
investor can purchase into the arrangement during Initial Public offering or
from the stock market after the units have been listed. The scheme has a
limited life at the end of which the corpus is liquidated.
The investor can make his departure from the arrangement by selling in the stock market, or at the termination of the scheme or during repurchase period at his choice. Interval schemes are a cross between an open-ended and a close-ended structure.
A professional investment manager oversees the portfolio, buying and selling securities as appropriate. These arrangements are open for equally purchase and redemption during pre-specified intervals (viz. monthly, quarterly, annually etc.) at prevailing NAV built prices.
The investor can make his departure from the arrangement by selling in the stock market, or at the termination of the scheme or during repurchase period at his choice. Interval schemes are a cross between an open-ended and a close-ended structure.
A professional investment manager oversees the portfolio, buying and selling securities as appropriate. These arrangements are open for equally purchase and redemption during pre-specified intervals (viz. monthly, quarterly, annually etc.) at prevailing NAV built prices.
Interval funds are very similar to
close-ended funds, but differ on the following points:
· They are not required to be listed on the
stock exchanges, as they have an in-built redemption window.
· They can make a fresh issue of units during
the specified interval period, at the prevailing NAV based prices.
· Maturity period is not defined.
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