An investor can exit a close-ended fund before maturity by selling units at the stock exchange where the scheme is listed
05-Jun-2015 •Research Desk
I have some holdings in Reliance Dual Advantage Fixed Term Plan & ICICI Pru Capital Protection Plan which are not maturing till 2015/2016. How can I exit from these funds before maturity and what is the penalty for such an exit?
- Hari Venkatesan
Reliance Dual Advantage Fixed Term Plan and ICICI Prudential Capital Protection Oriented Fund are close ended funds. In close-ended funds, an investor cannot exit before the maturity period of the scheme by selling his units back to the fund house. However, if unit holder wants to exit, he can attempt to sell the units at the stock exchange, where the scheme is listed. These units may not be frequently traded.
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