A close-ended scheme provides post-NFO liquidity to investors mainly t…

Question

A close-ended scheme provides post-NFO liquidity to investors mainly through

Accepted Answer

C. {'text': 'Listing of units on a stock exchange', 'label': 'C'}

1. Close-ended schemes accept money from the fund only during the NFO.
2. To let investors exit later, the units are compulsorily listed on a stock exchange.
3. Existing holders sell to other investors on the exchange, not to the scheme.
4. The exchange price often trades at a discount to NAV due to demand-supply.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.2.1_

Answer

{'text': 'Redemption at the AMC office', 'label': 'A'}

Answer

{'text': 'Direct sale back to the sponsor', 'label': 'B'}

Answer

{'text': 'Buyback by SEBI at NAV', 'label': 'D'}