A close-ended fund has a stipulated maturity period, which generally ranges from 3 to 15 years.

These funds are launched via an NFO and subsequently traded in the market like stock will their maturity period.

Once the NFO (New Fund Offer) period ends, investors cannot purchase or redeem units of a closed ended fund. In simple words, a closed ended fund ‘closes’ after the launch period until maturity.  

While the Net Asset Value of the fund determines its actual price, the traded price can be above or below this value depending on the demand and supply of the units.