Different Types Of Mutual Funds 2024

Different Types Of Mutual Funds 2024 | We learned about Mutual Funds. A fund manager who has good knowledge of the market invests the money collected from all the investors in various investment instruments.The profits generated by them are distributed to all those who have invested in that fund. These mutual funds are very useful for new entrants into the stock market.

Different Types Of Mutual Funds 2024 | Because the risk in these is very low. But those who want to invest in these mutual funds need to know how many types of mutual funds there are and which one suits us and invest.So today let us know about different types of mutual funds. Mutual funds are divided into 2 types based on your time range and assets.

There are 2 types in this time range:

• 1. Open ended schemes
• 2. Close ended schemes.
• There are many types of assets like 1. Equity Funds 2. Debt Funds 3. Hybrid Funds 4. Balanced Funds.

1. Open ended schemes | Different Types Of Mutual Funds 2024

Different Types Of Mutual Funds 2024 | Today we will learn about open ended as well as close ended schemes.Firstly open ended funds. That means these funds are always open. We can invest in them at any time and exit from them at any time.In these open-ended schemes, the mutual fund company keeps creating as many new shares as the investors want. So we have as many shares available as we need.

2. Close ended schemes | Different Types Of Mutual Funds 2024

Different Types Of Mutual Funds 2024 | Next closed ended funds. Same as IPE in our equity market here also you announce NFO ante new fund offer and give some time period for it.If we want to invest in those mutual funds, we can buy only in that time period. Once that time period is over, new people will not be able to invest in those mutual funds.

Also, these close-ended funds decide in advance how long you want them to run. For example, if a fund has a time period of 5 years, then the fund will run for 5 years.After that 5 years the profit amount is returned to all those invested in that fund. But open ended funds run continuously regardless of how long they run.Different Types Of Mutual Funds 2024 | As many shares as we need are available in open ended funds. But in closed ended funds only limited shares are available to the investors.

Finally these close ended funds i.e. open ended funds have become very popular. This is because you can enter and exit at any time in these open-ended funds.Also as many shares as we need will be available. Due to these reasons many investors are showing interest to invest in these open ended funds.

For More Updates,

Follow Our Website:Click Here