What is the benefit of open-ended funds/schemes?
The key benefit of open-ended mutual fund schemes is liquidity. Investors can buy or redeem units at any time based on the prevailing Net Asset Value (NAV), without needing to wait for a fixed maturity date.
This flexibility makes open-ended funds suitable for various investment goals—short-term needs, systematic investment plans (SIPs), or long-term wealth creation. Investors are free to enter or exit whenever it aligns with their financial plans.
What if...
| Scenario | Explanation |
|---|
| You need funds urgently | You can redeem units and receive proceeds within the defined settlement cycle. |
| You want to pause or change investment | Open-ended funds allow cancel SIPs or switching schemes at your convenience. |
| You compare with fixed deposits | Open-ended funds offer higher liquidity and no lock-in (unless it’s a tax-saving ELSS). |
| You invest during volatile periods | Flexibility to enter and exit helps in managing market exposure over time. |
Liquidity is the standout feature of open-ended schemes. It empowers you to align your investments with changing financial needs, without being locked in.
Last updated: 16 Jun 2025
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