Closed-end equity mutual fund launches have been declining since the Association of Mutual Funds in India (AMFI) asked fund houses to cap up-front commissions at 1%. In the 12 months preceding AMFI’s decision (April 2015), 58 closed-end schemes were launched.
In the 20 months since the cap, the launches fell to 29. The Securities Exchange Board of India restricting the launch of new schemes, also contributed to the fall in their launches. But investors should not be worried. There are several reasons why you are better off without closed-end schemes.
