1. In order to offer investors who are "selective" about their equity fund investments, several fund houses offer "stock concentration" through their closed-ended offerings, which give the flexibility of independent stocks, with a fixed number of units and stipulated maturity periods, while combining the best of the features of mutual funds.
2. Being closed-ended funds, their units are bought and sold in the stock market after the launch of the initial issue (which even keeps happening periodically as a series), as the fund houses do not directly buy or sell the units.
3. Typically, these funds are issued in the large-cap, mid-cap, multi-cap, small-cap and tax-planning categories with a few issues in the international category as well.
4. While the tax-planning category invariably stipulates 10 years maturity, the other categories are currently being offered with a fixed maturity period between 3-5 years.
5. Comparing past returns of the top 10 funds, as a whole, show that the performance of open-ended funds has been consistently far better than closed-ended funds.
2. Being closed-ended funds, their units are bought and sold in the stock market after the launch of the initial issue (which even keeps happening periodically as a series), as the fund houses do not directly buy or sell the units.
3. Typically, these funds are issued in the large-cap, mid-cap, multi-cap, small-cap and tax-planning categories with a few issues in the international category as well.
4. While the tax-planning category invariably stipulates 10 years maturity, the other categories are currently being offered with a fixed maturity period between 3-5 years.
5. Comparing past returns of the top 10 funds, as a whole, show that the performance of open-ended funds has been consistently far better than closed-ended funds.