As a first time investor, I thought of investing in IDFC premier equity fund. The other day, I just discussed about my planning with my colleague. He asked me whether I will be purchasing an open ended MF or close ended MF. I had no answer to his question. Please tell me the difference between two and something about their listing.
Close ended mutual funds have a lock-in period and they have a fixed maturity date whereas there is no maturity date for open ended mutual funds. Close ended MFs are listed but their redemption will be on discount.