Investing in different types of mutual funds

At Upstox MF Platform, you get various types of Mutual funds to choose from and invest in.

Take a look at these types of mutual funds available:

Open-ended mutual funds

Open-ended mutual funds are those that have no restriction on the number of stocks that can be purchased within the same mutual fund. The value of the fund is calculated at the end of each trading day. It is called the Net Asset Value.

Features of Open-Ended mutual funds:

An open-ended mutual fund issues unlimited stocks and bonds. Investing in an open-ended mutual fund helps you diversify your portfolio with the aim of generating an income. The entry limit is lower than several other types of funds which makes this a low-cost investment option.

You can open a demat account so that you can use to start investing in mutual funds as well.

Close-ended mutual fund

Close-ended mutual funds scheme is when a mutual fund raises a certain amount of money, a.k.a. capital for a publicly traded company or IPO.

Close-ended mutual funds specialise in a particular sector, location or type of industry. These types of mutual funds are not as diversified as the mutual funds in open-ended schemes.

Interval scheme mutual funds

Interval scheme mutual funds are combinations of open-ended and close-ended mutual funds’ schemes. An interval fund offers to buy back shares that have already been sold to the shareholders. Shareholders have the option of accepting the buy-back offer or to continue holding onto their existing shares. Depending on the pre-decided time duration, the companies in this fund will offer to buy back the shares at regular intervals. Shareholders can repurchase the shares that they sold as well. You can use the filters on the search bar of the Upstox MF platform to specifically study interval scheme mutual funds.

Types of mutual fund plans

Dividend:

Dividend mutual funds invest in companies that give dividends back or profits to their shareholders.Investors get dividend returns regularly in a this type of a mutual fund scheme. Similarly, investors can choose to reinvest the earned dividend back into the same mutual fund. Some even purchase additional shares in the mutual fund!

Growth:

Growth mutual funds include stocks of companies that focus on increasing their capital value. The dividend is almost next to nothing in such a fund. Thus, companies under such a plan invest their profits into research and development. These companies focus on acquiring new projects and expanding their reach.

Bonus:

Mutual funds allot new units to investors for free under a bonus plan. The number of units held by an investor increase. Moreover, the NAV reduces depending on the ratio of “bonus units” and purchased units.

Want to invest in any of these Mutual Funds?

You can feel free to follow these steps to invest in mutual funds:

  • Visit the Upstox MF Platform.
  • Browse all funds by logging into your account or
  • You can browse through the funds even if you don’t have any account!
  • To find the fund that suits your needs, click on “Browse all funds/ Explore funds.”
  • Choose from 8 filters given below:
    • Fund type
    • Category
    • Plan type
    • Fund house
    • Return
    • Minimum Investment
    • Age of fund
    • Lock in period
  • You can also search for the funds using our “Search option.”
  • Once you find the funds that interest you, you can view their portfolio, historical performance and other relevant details.
  • You can check the diversification of a fund’s portfolio. Depending on the companies and/or sectors that each fund is investing in, you can make your decision about investing in those sets of companies as a whole.
  • You can invest in a fund either via the lump sum method or start a SIP i.e. a Systematic Investment Plan.
  • Once you’re ready to purchase units of a particular mutual fund, you can open an Upstox account or log in to your existing account if you already have one.

Need any help? You may chat with us if you have any queries.
Alternatively you can call us at +91-22-6130-9999 or write to us at support@upstox.com.