Learn about the various types of mutual funds in 1 minute or less

Just see what are the different types of mutual funds here – Video Transcript

Here are 5 types of mutual funds let’s see each one of them in detail.

Open Ended Funds:

  • These are open for investors to enter or exit at any time.
  • Value of the unit capital changes on a regular basis
  • completely liquid and can be redeemed any time with mutual funds.

Closed Ended Funds

  • Investors can enter only at specific times and exit on a fixed maturity.
  • The value of unit capital remains stable or fixed
  • Less liquid and can be redeemed only on the stock exchange.

Interval Funds:

  • Combine features of both open-ended and close-ended funds
  • Largely close-ended, but become open-ended at pre-specified intervals
  • Actively managed funds

Passive Funds:

  • Actively managed funds
  • Fund manager actively manages investments & higher expenses
  • Expected returns are better than market performance.
  • Invest on the basis of a specified index and have lower expenses.
  • Performance of these funds tends to mirror the concerned index.