Question 5 of 6
When can investors buy units of a closed-ended mutual fund scheme directly from the mutual fund?
A
At any time after the NFO.
B
Only during the New Fund Offer (NFO).
C
During specified transaction periods.
D
When the scheme is listed on a stock exchange.
Correct Option:
B
Explanation
Investors can buy units of a closed-ended mutual fund scheme directly from the mutual fund only during the New Fund Offer (NFO). After the NFO closes, units are generally bought and sold through the stock exchange where the scheme is listed, unless the scheme provides specified repurchase or transaction windows.
