What are Closed-Ended Funds/Schemes?
Close-ended mutual funds schemes are available for subscription only during a specified time period. They have a fixed stipulated maturity date.
A close-ended fund or scheme has a stipulated maturity period e.g. 3-5 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the new fund offer and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices.
What are Open-Ended Funds/Schemes?
An Open-ended mutual fund schemes are available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. It allows investors to enter and exit the fund anytime after the NFO, whereas a close-ended fund ...
What is the benefit of open-ended funds/schemes?
These funds/schemes offer liquidity to the investors.
What are sector-specific funds/schemes?
Such mutual fund schemes invest in the securities of only a specific sector or industry, as specified in the offer documents, e.g., Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, Information Technology (IT), Banks, ...
Can Non-Resident Indians (NRIs) invest in mutual funds?
Yes, non-resident Indians can also invest in mutual funds. Necessary details in this respect are given in the offer documents of the schemes. For further details, contact our support team.
What is Debt Oriented Schemes?
The aim of income funds is to provide a regular and steady income to investors. Such funds are less risky and are advisable for investors seeking a short term return on their investment.