Open-ended mutual funds are those that have no restriction on the number of stocks that can be purchased within the same mutual fund. The value of the fund is calculated at the end of each trading day. It is called the Net Asset Value.
Purchasing new shares in this type of a mutual fund generates new ones within the mutual fund. An open-ended mutual fund issues unlimited stocks and bonds. Investing in an open-ended mutual fund helps you diversify your portfolio with the aim of generating an income. The entry limit is lower than several other types of funds which makes this a low-cost investment option.
To start investing in mutual funds via Upstox you can open a demat account.