Interval Funds

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Abstract:

Interval Funds in India combine the characteristics of both close and open ended funds. Interval Funds in India offer flexibility to the investors for they can be repurchased and sold at a time period that is predetermined. Interval Funds in India have been launched by many fund houses.

Mutual fund in India:

Mutual fund in India is a kind of trust that brings together the savings of the investors who have the same financial goals. The money that is collected is then invested in different instruments such as shares and debentures.

The capital appreciation and the financial gains that are generated by investing in these instruments are then shared among the investors on the basis of the amount of units that are owned by them. The various kinds of mutual funds in India are Interval Funds, Fixed Income Funds, Mid-Cap Funds, No Load Funds, and Income Funds.

Meaning of Interval Funds in India:

Interval Funds in India combine the characteristics of both the close ended funds and open ended funds. This means that Interval Funds in India can be repurchased and sold at the time that has been predetermined. Interval Funds in India are usually repurchased every six or twelve months or as has been unveiled in the annual report and prospectus of the fund. Interval Funds in India are sold and repurchased at the prices that are related to the Net Asset Value (NAV).

Advantages of Interval Funds in India:

The advantage of Interval Funds in India is that it allows the investor more flexibility than the close ended funds for he can sell it at the predetermined time. Further the advantage of Interval Funds in India is that it ensures that the investor has liquidity of capital at regular intervals of time.

Mutual Fund companies that have launched Interval Funds in India are:

  • Birla Sun Life Mutual Fund
  • Prudential ICICI Mutual Fund
  • ABN-AMRO Mutual Fund

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Last Updated 06/30/2011

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