Question

What is the difference between an open-end mutual fund and an ETF closed-end? What the difference between open-end mutual fund and a unit investment trust?

Answer 1

OEF stands for open ended fund , ETF stands for exchange traded funds, UIT stands for unit investment trust.
Difference between OEF and a UITS O UITS issue a fixed No of shares units at issuance time where as OFF keeps on offering new shares until closure of the fund. SUIS ons, are not actively managed because nuestment is made at the Prit?al time & it does not change but OEF's can be actively managed ( OFF'S rovestor is at a chopce to entry t exit out of the fund but ult's have termination date fixed (4) UTT's issue only units and OEF's issues redeemable shares of units. 6 UIT is a combination of mutual funds & closed and funds and securities are fixed from incept on till termination whereas in case of CEF Securities keeps on changing

ended mutnal nands fan Oifferences between open ETF closed end. CEF Cure highly liquid whert as ETFs lack which hinders transactions. dit BOEF are priced just once a day whereas ille traded throughout the clay. ( OFF require maintainence of high cash reseno balone Unlike ETF'S 4 OEF'S charge high fees & expenses where as if require low expense ato & ferox broker commissions, hanty active well managed ETF's have higher fees. 6 In case of OFF Investor can join the theme of call at any time, capital fund is unlimited & redmption perioda indefinite , whereas ETF'S are bought only apper shurs/ units are lirited on stock market & exit is hy selling in the stock market or termination of scheme or dunal repurchase period at his chorce.