List of Interval Funds in India

What are Interval Funds?

Interval fund is defined as a sort of investment that a company offers to repurchase its shares from shareholders regularly. In other words, the fund promises to buy back a specified part of its shares from shareholders regularly. Shareholders are under no obligation to accept these offers and sell their shares back to the fund. Interval Funds can invest in either equities or debt instruments or both. These funds’ units can only be purchased and/or redeemed during particular time intervals. The fund house announces the times when investors can sell or purchase units. They are similar to closed-ended funds in that you cannot buy or redeem units regularly....

Features of an Interval Fund

1. Risk: Interval funds are not really useful in an emergency. They are completely non-liquid. They cannot be redeemed on any secondary market. Even if an investor is willing to pay the exit load, he/she cannot exit before or after the time period specified....

How do Interval Funds Work?

1. Interval Funds are a mixture of open-ended and closed-ended mutual funds....

Who Should Invest in an Interval Fund?

These are one-of-a-kind funds that invest in non-liquid assets and are perfect for investors seeking unconventional assets. They are also appropriate for investors with short-term financial goals and a low-to-moderate risk tolerance. Interval funds typically invest in unconventional assets such as commercial real estate, forestry tracts, company loans, and so on....

Taxation of Interval Funds

Interval Funds are taxed similarly to other mutual funds based on the amount of debt or equity invested. For tax reasons, debt funds must have at least 65% of their portfolio in debt, whereas equity funds must have at least 65% of their portfolio in equity. Since the majority of interval funds are essentially debt-oriented, the long-term capital gains tax applies if the fund is held for 36 months or longer. Long-term capital gains are subject to a 20% tax rate with indexation benefits. By adjusting the purchase price of securities for inflation, indexation permits investors to be taxed on returns that exceed the inflation rate. Short-term capital gains are considered part of income and are taxed according to your income slab....

List of Interval Funds in India

Name of the Fund 1-year Return 3-year Returns 5-year Returns ICICI Prudential Interval Fund 6.79 8 9.54 IDFC Yearly Series II Interval Fund 8.55 7.47 8.03 UTI Fixed Annual Interval Income Fund 7.31 8.63 9.9 Reliance Interval Fund – Annual 7.99 7.46 7.85 Reliance Yearly Interval Fund 8.53 7.71 7.98...