Open Ended Mutual Funds
An often-cited name is Open Ended Equity Mutual Fund Schemes. Let's talk about what open-ended mutual fund schemes for equity are.
What is Open Ended Mutual Fund
These kinds of mutual fund schemes invest primarily in equity or stock markets.
They are called open-ended because for such schemes there is no lock-in time. At any point of time, an investor can cancel his investment. Usually, the redemption period is T+3 days.
There's something called exit load in these schemes. Depending on the complexity of the scheme, the exit load level can be as small as 1%. If an investor chooses to leave a scheme before a defined period that is as small as six months, it is the fee that an investor must pay.
Advantages of Open-Ended Mutual Fund
The fundamental benefit of this scheme is that at the desired time, the investor can book earnings.
The investor can obtain his invested resources in this scheme in case of any private emergency.
These schemes mainly invest in equity. And equity can be called the best asset class over a longer period.
Many open-ended schemes offer Trigger facilities. An investor specifies a target amount in this case and his investments are redeemed as and when the target amount is reached.
What Open Ended Mutual Fund has to Offer
An investor can also invest in these schemes through systematic investment plans or SIPs as it offers the average price advantages of the rupee.
Entry Load to these systems was removed in India. Investors can also invest online by visiting the corresponding fund houses portals.
With all these advantages and conveniences, it is, therefore, best to invest in an open-ended equity scheme and generate riches to safeguard the future.