You are here: Home » PF » Features » MFs
Business Standard

Closed-end funds give fund managers time to perform

In the absence of redemption pressures, they can pick multi-baggers . But, investors have to reconcile themselves to lower liquidity

Sanjay Kumar Singh 

Investing in new fund offers (NFOs) is always fraught with risks. So, a fund with a closed-end structure that invests in the micro-cap category is to be viewed carefully. The new fund offer of Sundaram Long-Term Microcap Tax Advantage Fund Series III, a closed-end scheme, is currently on (closing on November 11).

This fund will invest in stocks that rank 301 and below by market cap on the National Stock Exchange. A tax-saver fund, it will allow investors to avail of tax deduction under Section 80C. The good: The micro-cap space offers scope for identifying multi-baggers. To cite a ...

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, August 22 2016. 23:10 IST