• Close-End Fund

    Close end funds are issued by the fund management houses same as open end mutual funds but they are traded in the secondary markets through some organized exchanges acting as the mediator to facilitate the trading process. Management may charge a fee at the time of issuing the close end funds and charge for maintenance fee, but he buyer of these funds have to pay the relevant brokerage charges while trading on the funds. Here the transactions happen between the buyers and sellers and the trading can happen at below the NAV (at discount) or at above the NAV (at premium) based on the demand and supply of the particular mutual fund.

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