The title says it all. If someone could just brief me about it

More at: r/NepalStock by nandemf

  1. There are two types of mutual funds: open-ended and close-ended. The differences between the two are that the close-ended mutual funds are tradeable in the stock market (NEPSE) and are for a fixed period which, in the case of Mega Mutual Fund 1, it is for 10 years. So after 10 years, the company will return the amount you have invested.

    During these 10 years, mutual funds will use your money and invest them. After each year, they can provide you cash dividends only but this is not always done, especially in the bear market.

    As others have mentioned before, it takes some time for the shares allotted from IPO to appear on your shares. Please be patient.

    Just a piece of advice: Mutual funds are less risky than ordinary shares/stocks so it also gives lower returns in terms of price. I suggest you apply for the IPO of ordinary shares whenever available as doing this will give you higher returns in terms of both price appreciation and (cash and bonus) dividends.

  2. I’m new to this too. I just YouTube’d such things. “Close ended mutual funds”. Or just “Mutual Funds”.

  3. It takes time to get the shares to appear in meroshare and it also takes time for them to get listed in NEPSE. Well it means that its maturity period is 10 years so you can either let it be for 10 years and enjoy the cash dividend bonuses that it gives each year and in the final year you get other bonuses or you can sell it in secondary market

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