What are Open-Ended Mutual Funds?

What are Open-Ended Mutual Funds?

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What are Open ended Mutual Funds - Taxationwealth

The categories and types of mutual funds various companies offer are almost countless for any common individual stuck in the hustle of achieving that feeling of bravado in everyday routine. 

Open ended investments include open ended mutual funds, hedge funds and Exchange traded funds. This blog will help you to understand and gulp all the information required about the most recognized type of mutual fund i.e. open ended mutual fund.

Features of Open ended Mutual Funds

Open ended and close ended mutual funds do have a fair share of similarities due to which a pretty decent number of people are unaware that both entities. Both open ended and close ended mutual funds are managed by professionals who diversify the investment corpus by parking the funds into equity or other financial assets.

Open ended mutual funds are launched through NFOs and unlike close ended funds these can be bought and sold after the NFO is closed completing 30 days. 

The open ended funds are not traded on stock exchanges and also impose no limit on the number of units that can be issued by the fund manager. The purchase and sale of the units is done on the basis of NAV by the investors while the market is open. The net asset value is fixed once a day and all the buying & selling is done as per the NAV of that day.

Some of the open ended mutual funds also charge a fee famously known as exit load (back end load) and their is also front end load treated as an operating expense.

Why to invest in Open ended Mutual Funds?

Disadvantages of Open ended Mutual Funds

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