NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Which of the following is a feature of an interval scheme?
An interval scheme allows investors to purchase or redeem units only during specified transaction periods, not on every business day. It combines features of open-ended and close-ended schemes and is treated as close-ended under SEBI rules.
- AUnits can be redeemed on any business day at NAV
- BUnits are traded on a stock exchange only
- CUnits can be purchased or redeemed only during pre-specified intervals, and it is classified as close-endedCorrect
- DIt must invest only in equity shares of listed companies
Explanation
An interval fund combines open-ended and close-ended features. Transactions are allowed only at specified intervals, and SEBI treats it as close-ended with units usually listed or repurchase windows offered. It is not continuously redeemable.
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