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Open-Ended Funds

The cycle of money for most is ‘earn, save and spend’ each month, but how does this help you? Each of us often asks ourselves, how can we make our money work for us? The answer is simple, yet crucial ‘invest’. Now the next question you’d ask is, which is the best investment option? There are plenty, but instead of going through myriad options, here at Angel Bee we make it easier for you to decide. The best investment option for new and existing investors are Mutual Funds, to get exposure to a diversified range of investments. Our Angel BEE app helps you easy and quick access to our Mutual Fund plans especially open-ended ones. Here’s a bit more about these.

An Open-End fund scheme has no restriction on the number of shares the fund issues. Whether Large-Cap, Mid-Cap or Small-Cap, these are a safe and convenient investment avenue. These do not trade on a stock exchange; however, they hold stocks which are listed on stock exchanges. Shares are bought and sold based on their Net Asset Value (NAV)—calculated at the end of each trading day. The NAV fluctuates according to the movement of shares, which is why a diversified portfolio helps mitigate most market risks. Since the shares are traded continuously, it allows for easier investment and redemption. When many shares are redeemed, the fund may sell some of its investments to pay the investor. Moreover, the flexibility of choosing between a lump-sum or systematic plan, makes this type of fund an attractive investment option for you. These funds may have a higher expense ratio, but that’s only because they are actively managed by our expert fund managers.

Open-Ended Mutual Fund Plans by Angel BEE

Most mutual funds available, are largely open-ended, to a new investor, the difference between closed-end and open-end funds are minimal. Both open- and closed-end funds are managed by portfolio managers and evaluated by analysts. Investors can hold diversified portfolios in both types of funds. Both allow the pooling of investor funds, which in turn reduces investment and operating costs. Each type mitigates market risk one way or another, so how do you decide?

If you’re highly informed and are addicted to the stock market, then an open-end fund is right up your alley! Our Open-Ended Mutual Fund Plans are perfect for investors who are not risk-averse yet prefer a safe investment option. Analyses shows, actively managed funds tend to out-perform other similar investment types, like close-ended funds and ETFs, in the long run. Though we cannot guarantee the highs and lows of the market, we can, however, guarantee that your investment is in safe hands with our mutual fund experts. Finally, asset allocation or rebalancing is possible with open-ended funds which consider ‘Goal Based’ planning. Whether you’re investing for growth, education, travel or retirement, our investment plans will cover all your needs.

Top Open-Ended Mutual Funds in India:

Creating a mutual portfolio is a complicated process, investors are of two types; some are new and totally unaware of how markets move, and some are experts. Every investor has varied financial goals. At Angel BEE we have curated this list of Top Open-Ended Mutual Funds in India not just based on risk profiles and investment objectives, but also on a fund’s past performance. Each of these funds has been closely monitored and reviewed. The list covers the average risk-taking capacity, classified into a conservative, modest and aggressive.

Everything You Need to Know About Open-Ended Mutual Funds

Most people relate only to open-ended funds when talking about mutual funds, here’s a simplified version of what they are:

  • These funds hold shares which are listed on a stock exchange, but a unit of the fund itself is not listed on an exchange.

  • They are offered through a fund company which sells shares directly to investors and not via Initial Public Offers (IPOs).

  • The number of shares of an open-end fund is not fixed and therefore ideally unlimited.

  • Investors can buy or sell as many shares they want through direct market participation and do not need a brokerage or trading account.

  • Open-end fund prices are fixed once a day at their NAV, fund shares can be purchased only on their NAV for that day.

  • The number of outstanding shares in a fund goes up when they are sold and goes down when existing shares are repurchased. This is the reason share capital of this fund type varies.

  • The fund size expands when the number of shares being sold is more than the number of shares being repurchased. On the other hand, the fund size reduces when repurchases exceed selling.

Why Open-Ended Mutual Funds?

  • Worry-Free Asset Composition: Let our expert fund managers take your worries away by making all the right investment decisions for you. They have the qualifications and experience to ensure your portfolio is well-managed and continues to perform according to your expectations. Each portfolio balances the stocks based on past performance, risk-tolerance and investor goals.

  • Ease and Flexibility: Whether your investment objective is growth or income, these types of funds are an easy low-cost way to pool your money and yet, diversify your portfolio. This type of investment not only allows the investor greater flexibility in buying and selling but also, direct participation in the market.

  • Track Performance: Past performance or history of the open-ended fund is available to investors, which helps make well-informed and planned investment decisions. Although past performance is no guarantee of future performance, it is a useful way of assessing how well or badly a fund has performed in comparison to its stated objectives and competitors.

  • Systematic Investment: Instead of making a lump-sum investment, you have the option to initiate a systematic monthly investment plan for the fund you choose. Whether you’re a salaried employee or a retired individual, these funds allow you to invest an amount of your choice. Moreover, the ease of entry and exit into any fund makes it possible to withdraw or redeem only portions of a portfolio instead of the entire number of shares.

Get Better Returns with Open-Ended Mutual Funds

Highly diversified and liquid portfolios in open-ended funds help mitigate the risk of ‘putting too many apples in one basket’. The structure of the funds can be adjusted in case of turnaround in the general market scenario. If the equity market is rising and heading toward saturation, a portion of a portfolio can be redeemed and diverted towards debt funds. Shares can be redeemed based on the prevailing NAV which allows for a more liquid portfolio. These types of funds are perfect for booking 5%-10% profits in the short-term. Pooling of investments means lower investment and operating costs. Flexible participation in the market allows for sound investment decisions in accordance with the prevailing market conditions.

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