Savvy investors looking for value purchases are mopping up closed-end equity schemes of mutual funds that are available on the stock exchange platform. The interest in these schemes has grown because they are being sold by existing investors on the exchange at a discount to net asset values (NAVs).
Unlike an open-ended scheme, which can be redeemed at any point, a closed-end scheme has a lock-in of usually three or five years where investors who bought during the new fund offer, can redeem only once the product matures.