NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
Which of the following is a feature of a closed-ended mutual fund scheme in India?
A closed-ended scheme sells units only during the New Fund Offer and has a fixed tenure. Investors exit by selling on a stock exchange where listed, or at maturity, rather than redeeming at NAV with the fund on any business day, as in open-ended schemes.
- AUnits can be redeemed from the fund at NAV on any business day
- BUnits are issued only during the New Fund Offer and exit is through a stock exchange listing or at maturityCorrect
- CUnits are always issued at a fixed price of Rs 1,000
- DUnits can be bought only by Portfolio Managers
Explanation
A closed-ended scheme has a fixed maturity. Units are sold during the NFO and investors exit through exchange trading or at maturity. Continuous redemption at NAV with the fund is a feature of open-ended schemes, so option A is wrong.
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