alleryStart learning →Interval funds are best described as schemes that
AAre always open for daily transactions
BAre managed passively against a fixed index
CHave no maturity and never list on an exchange
DAre largely close-ended but open at pre-specified intervals
Answer & Solution
Correct answer: D. Are largely close-ended but open at pre-specified intervals
1. Interval funds combine features of open-ended and close-ended schemes.
2. They are largely close-ended but turn open-ended for pre-set transaction periods.
3. Minimum transaction period is 2 days; maximum interval period is 15 days.
4. Between intervals investors use the listed exchange platform to exit.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.2.1_
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