Open-Ended Mutual Fund

An open-ended mutual fund is a mutual fund scheme that does not have a fixed maturity date and allows investors to purchase (subscribe) or redeem (sell back) units directly with the fund house at the prevailing Net Asset Value (NAV) on any business day — providing high liquidity and flexibility. The total number of units in an open-ended fund fluctuates continuously as investors enter and exit, with the fund house creating new units upon subscription and cancelling units upon redemption. The overwhelming majority of mutual funds in India — including all equity funds, debt funds, hybrid funds, and liquid funds — are open-ended. Open-ended funds suit investors who value liquidity, systematic investment (SIP), and the ability to exit based on financial goals. For investors on Ventura Securities using mutual funds for wealth creation, open-ended funds offer the broadest range of investment strategies across equity, debt, and hybrid categories — with the critical advantage of daily liquidity at NAV, unlike close-ended funds or fixed-maturity plans that restrict redemption until maturity.