What is Open Ended Mutual Fund - Smart Working

  Open-ended Mutual Funds 

Mutual Fund are most common investment for all Invester that can be categories based
On structure . 

  On the Base on structure 3 types of mutual are available Open-ended , close-ended and 
Interval fund . 

Today we will talk about Open-ended Mutual and explore types of Open-ended fund in India . 

Open-ended Mutual Fund is one of the best way to invest in Mutual fund there is lots of benifis to invest in Open-ended Mutual Funds.

What is Open Ended Mutual Fund
What is Open Ended Mutual Fund 


What is Open-ended Mutual Fund #:-

In this type of fund do not have any maturity period any time we can purchase unit of any scheme or exite from our current NAV . 

Open-ended Mutual Funds are not traded on stock exchange . NAV of funds are calculate everyday after trading session day it is determine on the faclutaion of shares. 

Open-ended Fund are provide low cost work with good Return .

How to Open Ended Mutual Fund Works #:-

A mutual fund is take off in market through new fund offer , we can invest at the time of NFO . In the case of Open-ended Mutual , any time we can buy or sell the unit .

Investment in these fund can be made with
SIP ( Systematic Investment Plan ) or SWP
( Systematic withdraw Plan ) .

In Open-ended Mutual Funds, NAV fluctuate on the Base of demand and supply .

These fund invest in Stock Market and Debt Market and also according to the investment objective of the fund.

These fund is must register with SEBI before collection fund from public .


Mutual Funds are managed by professional
Fund manager. So It can give Good return to those Invester who don't have time to monitor market at every time .



What are the advantage of Open-ended Mutual Funds #:-


There is some key advantage of these fund -

Higher Return :-  These fund can give you higher return as compare to the other fund. For an Invester who want better return in shorter period of time so this is perfect scheme .

Management :- These fund is managed by expert,  who have good experience in equity and debt market . They can actively buy or sell the unit .


Withdraw Plan :- In Emergency we can withdraw fund quickly from the market .

Diversified Investment :-
Open-ended funds invest in different company , different industries .
This step can reduce your risk in market .

What are the disadvantage of Open-ended Mutual Funds #:-


Tax gain :- These fund is coming under tax , so whatever Profit comes you have to pay tax to the government that is one disadvantage of this fund.

High Volatility :- This fund provide high liquidity and allow to the Invester to entry and exit at any time . That is also one of the biggest disadvantage of thi fund.


Read also :-

    What is Stock Market ? 
    Types of Mutual Fund in India ?
     Who Regulates Mutual Funds ?
     Stock Trading tips for beginners .

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