Undecided About Which Type Of Mutual Fund To Invest In. Check This Primer
NDTV
Cannot decide between which type of mutual funds is beneficial for you to invest in? We have all the information you need to help you make an educated decision.
A mutual fund is a financial vehicle that pools together money from various sources and invests it into different types of securities like stocks and bonds. When investors put their money in mutual funds, they partially own the fund and thus become eligible to get a share of the revenue generated by it. There are two types of mutual funds — open-ended and close-ended. The two differ in terms of their investment structure, the flexibility of investment, and the time within which they can be bought or sold. Open-Ended Mutual Funds One of the most common and popular investment tools, they always remain open to investment and recovery as they do not have a lock-in or fixed maturity period. Open-ended mutual funds offer higher liquidity and are not traded on stock exchanges. Benefits And DisadvantagesMore Related News