Benefits of Open-Ended Funds

[Aileya]

Being a new Investor in Funds,I had some queries in my mind regarding Mutual funds.If I Invest in Mutual fund will it be Profitable.What is Open-Ended Fund?Do Open-end funds also buy back shares when investors wish to sell.What are the advantages of Open –Ended shares.One of the most important question was that do open fund issues and redeems shares on demand. In how many Days does the investor receives the cheque? What are the Major Risks while investing in Mutual Funds.

[Educated]

One of the best way of spending your money is Investing in Mutual Funds.Over The it has gained immensely in their popularity.It also provides Profesional Management and diversification which has proved to be major enabling factor. Thorough schemes over the last few years fund house has managed it very efficiently and its consistent return in the volatile market. This Factor Proved to bring more and more Investors in Mutual fund. An investor can choose the fund on various criteria according to his investment objective.

[Masters]

Open –Ended fund is also a type of Mutual Fund Which has no restrictions on the amount of shares the fund will issue. This is one of the features which attracts Investors to invest in Open-Ended Fund.It can also buy back the shares when investors wish to sell.The majority of investors invest in Open-End Fund. It provides convenient investing tools.Even if the demand is High it will continue to issue shares where no matter there are how many investors.One more important thing about Open-End Fund is that it should be noted by Fund’s Investment manager.

[Zimic]

Shares Redemption can occur through more than one activities.The issuer of the bond or share of an issuing company has several rights which are called as “call”. This rights are typically protected.This rights allow the group or issuer who issued the stock to call the shareholder. By doing this shareholder has to surrender their cash. Usually Shareholder redeem shares for purpose of investing it into another company to obtain more profit or money. Redemption is done by investors when they are trying to protect themselves from greater loss.

[Recruiter]

When an investors invests an a amount on mutual funds,he deliberately thinks that he would gain some profit. But the Biggest Risks in Investing in Mutual fund is the deficit. Even Nifty and Sensex has said that if any investors whose is investing large caps of equity shares,he would definitely expect to make at least as much return as possible. Another Risk in Mutual fund is “Style drift”If I invest in Large Cap Fund and then it begins to Invest in Small cap stocks which may occur as risk to investor.Change of fund manager can cause a risk in into our portfolio.

[Career-Minded]

Equity Fund can also be known as “stock fund”. Mutual fund invests it Principally in stocks.The response can be positive as well as Negative. Its size is known or determined by a company’s market value,which is reflected in the fund’s stock holding which is useful to categorize equity mutual funds or stock fund. Categorization is done on the basis of domestic or international. These stocks also targets business sectors such as real estate,health care,commodities. They are also called as “specialty: stock funds.