A comprehensive dictionary of mutual fund and investment terms explained in simple language.
A company that manages mutual fund schemes by investing pooled money from investors in securities like stocks and bonds.
The total market value of all investments managed by a mutual fund or an AMC.
The average annual return on an investment over a specified period, expressed as a percentage.
A standard index (like Nifty 50 or Sensex) against which a mutual fund's performance is measured.
Mutual funds that invest in well-established, financially stable large-cap companies.
The rate of return that would be required for an investment to grow from its beginning value to its ending value over a specified period.
The profit earned when an investment is sold for more than its purchase price.
Mutual funds that invest in fixed-income securities like government bonds, corporate bonds, and treasury bills.
Spreading investments across different asset classes to reduce risk.
A portion of a company's profits distributed to shareholders or mutual fund unitholders.
A tax-saving mutual fund with a 3-year lock-in period that offers deductions under Section 80C.
Mutual funds that primarily invest in stocks/shares of companies.
A fee charged by the fund when an investor redeems units before a specified period.
The annual fee charged by the fund house to manage the mutual fund, expressed as a percentage of AUM.
A professional responsible for making investment decisions for a mutual fund scheme.
A mutual fund that invests in other mutual fund schemes rather than directly in stocks or bonds.
Mutual funds that invest in a mix of equity and debt instruments to balance risk and return.
Mutual funds designed to track and replicate the performance of a specific market index like Nifty 50.
The rate at which the general level of prices for goods and services rises, reducing purchasing power.
A mandatory one-time verification process required by SEBI for all mutual fund investors.
The minimum period during which an investor cannot redeem their mutual fund units.
A one-time, bulk investment in a mutual fund as opposed to periodic investments.
Gains from selling equity mutual fund units held for more than 1 year, taxed at 10% above ₹1 lakh.
The per-unit market value of a mutual fund scheme, calculated daily by dividing total assets minus liabilities by the number of units.
The first-time subscription offer for a new mutual fund scheme, similar to an IPO for stocks.
The process of selling mutual fund units back to the fund house to receive your money.
An assessment of an investor's willingness and ability to take financial risk.
Securities and Exchange Board of India — the regulatory body that oversees mutual funds and securities markets.
A method of investing a fixed amount regularly in a mutual fund, typically monthly.
Gains from selling equity mutual fund units held for less than 1 year, taxed at 15%.
A plan that allows investors to withdraw a fixed amount from their mutual fund at regular intervals.
Mutual funds that invest in a specific theme or sector like technology, healthcare, or infrastructure.
The complete cost of managing and operating a mutual fund, including management fees, administrative costs, etc.
The shares or portions of a mutual fund scheme that an investor holds. The number of units depends on NAV at time of investment.