CLOSE-ENDED FUNDS

NAME: CH.PRASANTH
COLLEGE: MVGR
ROLL NO: 20331E00C5
 CONTENTS

Mutual Funds
01 Workflow of mutual fund
Benefits of close-ended funds
04
02 Types of mutual funds

05 How to invest in close-ended

funds
Close-ended funds
03
01 MUTUAL FUNDS

A mutual fund is a company that pools money

from many investors and invests the money in

securities such as stocks, bonds, and short-term

debt. Investors buy shares in mutual funds.

Each share represents an investor's part owner-

ship in the fund and the income it generates.

WORK FLOW OF MUTUAL FUND
02 TYPES OF MUTUAL FUNDS

• Open ended fund

Maturity • Close ended fund
Period • Interval funds

MUTUAL
FUNDS
• Equity or Growth fund
Invest- • Debt or Income fund
• Balanced funds
ment Ob- • Money market or liquid
jective fund
• Gilt fund
 CLOSE-ENDED FUNDS

The SEBI defines close-ended funds as mutual funds that have a stipulated maturity

period. These mutual funds are available for subscription during a specified pe-

riod at the time of the scheme launch. Investors can invest in these mutual funds

during this New Fund Offer (NFO) period, post which, they can list the units on

the stock exchanges.

Benefits Of Close-Ended Funds

 Stability

 Freedom from significant

flows

 Trading on the stock ex-

changes

 Unique portfolio
How to invest in close-ended funds

If you are wondering how to buy close-ended funds, follow these simple steps:

1.Create a mutual fund account with an AMC (Asset Management Company)

2.Complete your KYC

3.Input the necessary details, as required

4.Identify the fund(s) you wish to invest in based on your personal and financial
goals, risk tolerance, and investment horizon.

5.Select the apt close-ended fund that best suits your portfolio and transfer the
required amount

(N.B.: Unlike open-ended schemes, close-ended funds do not allow investments

via SIP (systematic investment plan), STP (systematic transfer plan), or SWP
(systematic withdrawal plans), but just through lumpsum investments.) 
THANK YOU