Essay Types Of Mutual Funds : Closed Ended Funds

Essay Types Of Mutual Funds : Closed Ended Funds

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TYPES OF MUTUAL FUNDS
Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they 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. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.
Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.
INVESTMENT OBJECTIVE:
Equity Funds Dividend
The aim of Equity Funds Dividend is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term.
Equity Funds Growth
The aim of Equity Funds growth is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term.
Balanced Funds Dividend
The aim of balanced funds dividend is to provide both dividend and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in th...


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...ne benefits of low risk, steady returns, high liquidity and capital appreciation through diversification and expert management. Therefore, activities of mutual funds have short and long term impact on the savings and capital markets and national economy; mutual finds thus assist the process of financial deepening and intermediation.
In India, at present, there are many mutual funds as also investment companies operating both in the public sector as well as in the private sector. These compete with each other for mobilizing the investment funds with individual investors and other organizations desirous of placing their funds with these mutual funds would like to know the comparative performance of each so as to select the best mutual fund or investment company. For this, evaluation of the performance of mutual funds and their schemes is necessary.







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