07-25-2011, 04:43 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Abuzar Qazi</i>
<br />Assalam o Alaikum
I wanted to know the difference between open and close end mutual funds with example. can anybody guide please?
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Hi dear ABUZAR -
Jani hope you are doing well.
Coming to your question, the difference between two is evident by their names
"Open" ended mutual fund-means you can buy /sell units anytime...and units are like share capital of fund.....the value of unit is the net assets (NAV) value of Fund divided by number of units issues/outstanding which keep on chaning every day...
Coming to close ended Mutual funds..
Its similar to share capital of company as it has certificate instead of units and certificates are like shares in case of company ....they cant be issued redeemed on daily basis ...how ever units are traded on stock exchange...
I hope this answer your question...
IMDAD ALI SHAH
Your Best buddy
<br />Assalam o Alaikum
I wanted to know the difference between open and close end mutual funds with example. can anybody guide please?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hi dear ABUZAR -
Jani hope you are doing well.
Coming to your question, the difference between two is evident by their names
"Open" ended mutual fund-means you can buy /sell units anytime...and units are like share capital of fund.....the value of unit is the net assets (NAV) value of Fund divided by number of units issues/outstanding which keep on chaning every day...
Coming to close ended Mutual funds..
Its similar to share capital of company as it has certificate instead of units and certificates are like shares in case of company ....they cant be issued redeemed on daily basis ...how ever units are traded on stock exchange...
I hope this answer your question...
IMDAD ALI SHAH
Your Best buddy