What happens if a mutual fund scheme closes down?
If a mutual fund scheme winds up or closes, the assets of the scheme are liquidated. Following this, the proceeds are distributed to the unit holders in proportion to their holdings, based on the prevailing Net Asset Value (NAV) after deducting the relevant expenses. Furthermore, mutual funds are obligated to provide a report on the winding up to the unit holders, detailing the reasons for closure, the winding-up process, and the distribution of assets.
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Where can I find details about the lock-in period for a mutual fund scheme?
A lock-in period refers to a specified duration during which investors are restricted from selling their mutual fund holdings. In the Indian context, the duration of the lock-in period usually starts from a minimum of 3 years. While a majority of ...
What does 'Additional Lumpsum' mean in Mutual Fund investments?
A lumpsum investment pertains to a one-time commitment of funds into a specific mutual fund scheme. Essentially, when you invest a certain sum all at once, that's termed as a 'lumpsum' investment. Now, an 'additional lumpsum' is when you decide to ...
Does the NAV of a mutual fund scheme change daily?
Yes, mutual funds pool investors' money to buy securities in financial markets. Given that these securities experience price fluctuations each day due to market dynamics, the NAV, which reflects the value of these securities, also shifts daily.
What is a mutual fund?
A mutual fund is a financial vehicle that pools together money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities. Managed by a professional portfolio manager, mutual funds offer investors access to a broad ...
When can I access my mutual fund purchase details?
After executing a mutual fund transaction, you will receive the purchase details within three days from the date of the transaction, often referred to as T+3 days.