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Closed ended schemes generally offer exit option to investors through a Stock exchange2 pointsa) Trueb) Falsec) Partly Trued) Partly False

Question

Closed ended schemes generally offer exit option to investors through a Stock exchange2 pointsa) Trueb) Falsec) Partly Trued) Partly False

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Solution

a) True

Closed-ended schemes are mutual funds with a fixed number of shares. These shares are not redeemable from the fund but are bought and sold in the secondary markets, such as a stock exchange. Therefore, the exit option for investors in closed-ended schemes is generally through a stock exchange.

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