Closed- End Funds

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Closed- End Funds in India have a specified period of maturity which varies between three to fifteen years. The investors can make investments in Closed- End Funds in India during the period of public offer or they have to buy the units of the funds from the stock exchanges.

Mutual fund in India:

Mutual fund in India is a kind of financial intermediary in which a large number of investors collect their money with the objective of investing the money.Mutual funds in India have a fund manager who invests the money that has been collected into specific securities such as bonds and stocks.

Mutual fund in India is thought to be one of the best investments for it is easy to invest in and also it is cost efficient. The main advantage of Mutual fund in India is its diversification which helps to maximize the returns and minimize the risk.

Closed- End Funds in India:

Closed- End Funds in India have a fixed period of maturity which can vary between three to fifteen years. Closed- End Funds in India can be subscribed to only during the period of time that has been specified. Investors can make investments in Closed- End Funds in India either during the period of public offer or buy the funds from the stock exchanges.

In Closed- End Funds in India, the number of shares that are sold in the public offer is fixed and after this the selling and buying of the units are possible only in the stock exchanges. Certain Closed- End Funds in India repurchase the units periodically at related prices of Net Asset Value (NAV) in order to provide the investors an exit route.

Major Closed- End Funds in India are:

  • UTI Wealth Builder
  • HDFC Long-Term Equity
  • Standard Chartered Enterprise Equity
  • Franklin India Smaller Companies
  • Birla Long-Term Advantage
  • Tata Capital Builder
  • ING Vysya C.U.B.
  • Prudential ICICI Fusion
  • Tata Equity Management

To knoe more about Classification of Mutual Funds click on the following links:



Last Updated 06/30/2011

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