Types of Mutual Funds...

Have you been considering making an investment in a mutual fund? If so, you will likely want to get to know about the different types of mutual funds in India. Being informed and knowing what options are available can help you choose the one that best suits your investment needs and goals. Open-Ended Funds This is a type of fund where units are open for redemption or purchase throughout the year. Basically, with this type of investment, you can keep investing as long as you want. There aren’t any limits regarding the amount that can be invested into the fund, either. An open-ended fund is also actively managed (in most cases). This means that the fund manager is going to determine where investments are made. Close-Ended Funds Another one of the types of mutual funds in India is the close-ended fund. With this, units are only able to be purchased during the offer period. They are able to be redeemed at a set maturity date. Unlike the open-ended funds, after the stocks or units have been purchased, they are not able to be resold into the mutual fund but have to be sold for the current price of the shares, through the stock market. Interval Funds This is a fund that has the features of both open- and close-ended funds. This is because it is opened for the repurchasing of shares at different times during the tenure of the fund. As you can see, there are several types of mutual funds in India. It is a good idea to consider each one, and the pros and cons of each carefully to determine the type of investment you would like to make. Be the first to like. Like...

The Smart And Easiest Way To Compare Mutual Funds...

It can sometimes difficult to get a safe and reliable means of investing. This is due to the reason that many people are not fully aware of the options which are found in the market. The best thing to perform when you invest in the mutual funds is that you ensure that you are well-equipped with proper and necessary facts. It is vital that you are fully aware about what your investment option includes so that you need not get any surprises along the way. Mutual funds are suitable investment options & have the benefit of liquidity, convenience and professional management. It is also essential that you know very well that mutual funds seem to be entirely risk-free. When you own the proper information, it is extremely easier for you to create an informed decision & compare the different mutual funds so that you can acquire the right one for your needs. This will vary according to your objectives, length of time you wish to investment & your risk tolerance factors. It is also indispensable that you also place funds sales charges, the size, and age of the fund, fees, and expenses, the fund’s risk & volatility into consideration. You can also compare Mutual Funds by evaluating them with their returns. By this way, you are able to analyze how much the fund has acquired over a specific period of time. The fund’s benchmark is yet another way for you to easily compare mutual funds. It will offer a standard for you to create your investment. You can also compare mutual funds logically and the five areas which you need to compare are fees, management, relative performance, standard deviation, and beta. Other than that, you must also see the market conditions before planning to...

Types of Mutual Funds in India based on the objective of Investors...

Mutual Funds is the amount of investment that is often collectively made by a Non Banking Financial Institution from individuals, firms and companies willing to invest in the shares and securities of different companies. The types of Mutual Funds are most commonly classified on the basis of the objective of the investor. Types of Mutual Funds in India are, thus, as follows: Growth Funds: The Mutual Fund where the money is invested in equity stocks with high risks and is usually a long term investment with higher returns expected by the investors. Income Funds: Money invested in fixed income instruments like bonds, debentures, provide capital protection and regular secure income to investors Pension Funds: It is the most common and widely used type of Mutual Funds in India. The investment here is split between equity risk and debt securities balancing the steady returns on a regular basis. The return can be taken as monthly pension, lump sum amount or a bit of both as already mentioned by the retired investor. It is the long term investment with the least possible risk and steady returns. ELSS Funds: These are mainly equity share investment, which is deduction under Income Tax Act. These capital investments are high on risk as well as returns. Fixed Maturity Funds: Here, assets are invested in debts and the money market for a specific time. The maturity date is same or earlier than fund’s fixed returns date. Liquid Funds: These are invested in short term instruments with low risks to the investors and moderate returns. These can be termed as very short term Investments. Capital protection Funds: These mutual funds are made on a split scheme basis. A part of the investment is spend on equity shares that are risky in nature...