Types of Mutual Funds based on structure.

Both the funds operate on different structures of mutual funds and the same have been explained below:

Open Ended Funds	Close Ended Funds
Meaning
These funds are not traded in the open market, and don’t have fixed number of units to be bought or sold. The Net asset value (NAV) changes daily as it is dependent on the prices of shares and bonds in the fund.	These funds are traded on exchange and have fixed number of units that can be traded. The money in these funds are raised through New Money Offer (NFO) and further traded in the stock market just like stocks.
Trading Prices and Maturity Period
The units are bought directly from the fund at the price of NAV existing on the day. These types of funds have no fixed maturity period.	The units are bought through broker and price at which they are bought can be at par, premium or discount of the NAV. Maturity period is fixed.
Liquidity
These type of funds provide liquidity to the investors as the units can be redeemed anytime.	The investment in this fund can be redeemed only on the prescribed dates i.e. generally the maturity date. Thus the investments does not provide liquidity and funds can remained for long period of time.
Trading and Track record
As the historical data is available with the investor, it provides him with enough data to take a well informed decision.	Unlike open ended funds, the track record of close ended funds are not available and hence the investors are dependent on the fund manager to track its record.
Types of investment
This funds provides an option of Systematic Investment Plan (SIP), which is more suitable to the general public at large. SIP is just like an EMI option where a predetermined amount gets invested in the fund at a predetermined date.	Lump-sum investment requires to be done in this case, which is more risky in nature and may not be affordable by the salaried or other class of people.

Thank You
Regards- Gaurav Sureka
Kautilya
IBS Mumbai