What is a Mutual fund?
Mutual funds manage a portfolio of capital market instruments and precious metals by funds collected from the public. Each investor participates to the ownership of the mutual fund by purchasing the certificates that assign a certain amount of the fund.
What is the meaning of fund type?
There are two different types of mutual funds, Type A and Type B. Type A mutual funds are required to invest at least 25% of their assets listed in ISE equities. Mutual funds that have no such obligations are classified as Type B mutual funds. Type of the fund is important for taxation. Type A funds have tax advantages.
What is the strategy types of the funds?
Mutual funds are also classified according to their asset allocation. The aim of this classification is to satisfy the needs of all kinds of investors who have different risk/reward expectations. According to their allocation, there are 11 strategies for funds: Notes and Bonds, Equity, Sector, Affiliate Companies, Group, Foreign Securities, Gold and Precious Metals Funds, Variable, Balanced/Mixed, Liquid and Index.
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