{"id":4166,"date":"2023-03-16T12:28:43","date_gmt":"2023-03-16T12:28:43","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/close-ended-schemes\/"},"modified":"2023-03-16T12:28:43","modified_gmt":"2023-03-16T12:28:43","slug":"close-ended-schemes","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/close-ended-schemes\/","title":{"rendered":"Close ended schemes"},"content":{"rendered":"<p>\nA Close ended scheme refers to a mutual fund in which the investment is locked-in for a specified period of time. Investment in a close ended scheme can be done only during the New Fund Offer period (NFO). The units can be redeemed once the lock-in period or the tenure of the scheme is over.<\/p>\n<h2>What are the features Close ended schemes?<\/h2>\n<p>Some features of Close ended schemes are:<br \/>\na) Liquidity in these schemes is available only after the specified lock-in period ends or once the fund matures.<br \/>\nb) Redemption proceeds for close ended schemes are received only after the mandatory lock-in period is over.<br \/>\nc) Investment in these schemes can only be done during the New Fund Offer (NFO) period.<\/p>\n<h2>What are the benefits of close ended schemes?<\/h2>\n<p>Some benefits of close ended schemes are:<br \/>\na) These schemes are good for long term investors who do not have liquidity issues.<br \/>\nb) Investors who do not want to monitor market performance of their investments can choose close ended schemes.<\/p>\n<h2>What are the limitations of close ended schemes?<\/h2>\n<p>Some limitations of close ended schemes are:<br \/>\na) There is no SIP option available in these schemes.<br \/>\nb) Investors cannot analyse or research as there is no track record available for close ended schemes.<br \/>\nc) Averaging during down markets is not possible for these schemes.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>A Close ended scheme refers to a mutual fund in which the investment is locked-in for a specified period of time. Investment in a close ended scheme can be done only during the New Fund Offer period (NFO). The units can be redeemed once the lock-in period or the tenure of the scheme is over. [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-4166","post","type-post","status-publish","format-standard","hentry","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4166"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4166\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}