Mutual Funds & Types

Mutual Funds & Types

A mutual funds are those funds that are invested in wide range of shares across the particular shares. this is done in order to diversify the risk across all the securities because all the securities will not move on the same direction.

Open-Ended Funds
Open ended funds are those funds that allows subscription or repurchase on continuous basis. they will be no maturity period
the schemes includes liquidity. those funds can buy or sell units at NAV (Net Asset Value).

Close Ended funds
Close ended funds are those funds that allows subscription or to buy sell on stipulated period i.e 5-7 years. this kind of schemes announces NAV on every weekly.

Balanced Funds
 This funds includes the combination of growth and income funds.this is suitable for the investor for who are looking for the moderate growth.

Money Market or Liquid Fund
This mutual funds are invested under the shot term period money markets like treasury bills,government securities, certificates of deposit and inter-bank call money, commercial paper, etc. the main aim is to provide the liquidity.

Gilt Fund
These funds invest only in government securities that includes no risk. The NAV may change in this  funds based on the  fluctuate in interest rates.

Index Funds
Invests under the particular index of BSE stock exchange ( nifty 50 ).