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A close ended mutual fund is one which does not accept fresh deposits/investments into the mutual fund once it is kicked off/started. Only the set of investors who invested their money in the fund during the IPO period remain investors. The fund manager would have promised his investors a certain kind of performance through the prospectus and would have a specific/fixed timeframe within which he plans to do so. Since he does not have to worry about fresh amount deposits or frequent redemption requests, he would be able to think for the long term and maximise the returns of the mutual fund.
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How and where to sell a closed ended mutual fund?
A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.
What is the difference between close ended mutual fund and open ended mutual funds?
An open end mutual fund generally continues to accept investment after the fund is started. As this happens, the fund can grow larger as more investors buy shares in the fund. The open end fund then takes those new dollars and buys additional securities. Shares are priced at the end of day by taking the value of the fund's net asset value divided by the number of shares outstanding. Each share is thus priced at par value to the underlying investments in the fund. To "cash-out" of one's investment, the shares are redeemed by the fund itself, usually after trading is over for the day at the net asset value price for that day. Occasionally, if management of an open end fund feel cash is flowing into the fund to quickly, they may close the fund to new investment, but is still classified as an open end fund. A closed end mutual fund generally accepts investment only during initial setup. After that, shares in the fund are bought and sold similar to a stock on one of the exchanges. The shares may sell at a discount or a premium to the underlying securities owned by the fund, depending on the market. To "cash-out", an investor sells the shares on the exchange at the market price during the trading day. The fund itself is not involved in the day-to-day sale and purchase of fund shares.
What are closed end fund?
Close ended funds are mutual funds that have a lock-in period, i.e., you cannot redeem or sell your units before the date of maturity. Let us say you invest in a 5 year close ended fund today, you can sell it only in 2014.
What is the use of closed end mutual funds?
A closed end fund means that an investment company that raises a fixed amount of capital goods, gets is listed and traded on the stock exchange. This word means closed end mutual funds, but closed end fund is short.
What is front ended load mutual fund?
A front ended load mutual fund that charges a sales of charge that must be paid when a person buys a investment.This reduces the amount of shares that can be purchased,but it is better for long term investors.A fund end load mutual fund will also charges a smaller 12b-1 fee is also know as distribution fee.When considering mutual fund there are lot of AMC that offer good schemes for both long term as well as short term investors. Check out Reliance mutual fund which is fast emerging as one of the best mutual fund companies in the country.
Are open-end funds the same as mutual funds?
Often referred to as the mutual fund industry, the open-end fund industry comprises about 95 percent of the mutual fund market
If there is any difference between NET ASSET VALUE of open-end mutual fund schemes and close-end mutual fund schemes?
There is a difference between the two but it is determined by when the NAV value is assigned. Speak also with the fund holding store to determine how they do the NAV. I could differ from store to company. Sources: http://www.amfi.com/buying/mutual-fund-store http://www.mutualfundmediacenter.com
What was the first American open-end mutual fund?
The first American open-end mutual fund, Massachusetts Investors Trust, was started in 1924
How many mutal fund in Nepal?
MUTUAL FUND IN NEPALNepal is a land lock country and it is between the two big growing economy country China in north and India in South,East&West.In Nepal there is not proper growing of Financial Markets so the Mutual Fund concept so in Nepal there is only two mutual fund the are:-NCM Mutual Fund &CBU Mutual Fund1. NCM Mutual FundThis fund is generated by Nepal Industrial Development Co-operation in 2059. This fund is an Open end fund.2. CBU Mutual FundThis fund is generated by Citizen Investment Trust and this is a closed end mutual fund.
Was the Massachusetts Investors Trust the first American open-end mutual fund?
The Massachusetts Investors Trust was the first American open-end mutual fund
When was the first American open-end mutual fund established?
The first American open-end mutual fund, Massachusetts Investors Trust, was started in 1924
Was the first American open-end mutual fund created in 1924?
The first American open-end mutual fund, Massachusetts Investors Trust, was started in 1924
How and where to sell a closed ended mutual fund?
A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.
Can a mutual fund investor use a regular account to purchase shares in an open-end fund?
No
Can open end mutual funds short stocks?
The vast majority of mutual funds do not short stocks. Whether it is an open end or closed end fund is irrelevant. If a fund can short stocks, this strategy will be described as a "long-short" fund or something similar.
Can anyone please tell you about front end load mutual fund?
A fund end load mutual fund Is a fund that charges a sales charge that must be paid when a person buys a investment. This reduces the shares that can be purchased, but its better for long term investment. There are also low front end load fees which are best for short term investors. There are many websites which provide information such as Reliance mutual fund, ICICI, HDFC.
What is the difference between close ended mutual fund and open ended mutual funds?
An open end mutual fund generally continues to accept investment after the fund is started. As this happens, the fund can grow larger as more investors buy shares in the fund. The open end fund then takes those new dollars and buys additional securities. Shares are priced at the end of day by taking the value of the fund's net asset value divided by the number of shares outstanding. Each share is thus priced at par value to the underlying investments in the fund. To "cash-out" of one's investment, the shares are redeemed by the fund itself, usually after trading is over for the day at the net asset value price for that day. Occasionally, if management of an open end fund feel cash is flowing into the fund to quickly, they may close the fund to new investment, but is still classified as an open end fund. A closed end mutual fund generally accepts investment only during initial setup. After that, shares in the fund are bought and sold similar to a stock on one of the exchanges. The shares may sell at a discount or a premium to the underlying securities owned by the fund, depending on the market. To "cash-out", an investor sells the shares on the exchange at the market price during the trading day. The fund itself is not involved in the day-to-day sale and purchase of fund shares.
