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Six things to be wary of while investing in close-ended mutual funds

Kunal Bajaj, Founder & CEO, Clearfunds utters, “As the investor is locked into these investments, it means larger, guaranteed commissions for the distributor (generally paid upfront) and certainly of fund management fees over the term of the scheme.” So, often there are recommendations to subscribe by distributors in this close ended funds without analysing your risk appetite and financial goals.