Category: Mutual fund
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Asset Under Management
The concept of Asset Under Management (AUM full form) of Mutual Funds is similar to market capitalization while directly trading in the stock markets – both reflect the potential returns generated against the resources of the investors. What is Asset Under Management (AUM) Asset Under Management is the total cumulative investment sum of a particular…
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Expense Ratio
What Is Expense Ratio? Expense ratio is the annual maintenance charge levied by mutual funds to finance its expenses. It includes annual operating costs, including management fees, allocation charges, advertising costs, etc. of the fund. Value of an expense ratio depends upon the size of the mutual fund in question. A fund operating with a smaller…
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Fixed Income Securities
Meaning of Fixed Income Securities Fixed income securities yield guaranteed returns on investments. They act as a liability for the organisation launching them in the market. Returns on fixed-income investments are generated periodically, and the interest payable on these securities remain constant, irrespective of market fluctuations. The final value of the fixed income security at the…
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SEBI – Securities and Exchange Board of India
The Securities and Exchange Board of India (SEBI) was founded as the regulating authority for the Indian securities market on April 12, 1992, by the SEBI Act 1992. What is SEBI? SEBI is essentially a statutory body of the Indian Government that was established on the 12th of April in 1992. It was introduced to…
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STP – Systematic Transfer Plan
What is a Systematic Transfer Plan? A systematic transfer plan allows investors to shift their financial resources from one scheme to the other instantaneously and without any hassles. This transfer occurs periodically, enabling investors to gain market advantage by changing to securities when they offer higher returns. It safeguards the interests of an investor during market…
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What is NAV?
NAV full form stands for Net Asset Value. It represents the market value per share for a particular mutual fund. It is calculated by deducting the liabilities from total asset value divided by the number of shares. One needs to gather the market value of a portfolio and divide it by the total current fund unit…
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Lump Sum
What is lump sum? The phrase ‘lump sum’ primarily means a large sum of money. In financial terms, in regards to the investment of a substantial sum of money at one go instead of breaking it down into multiple installments. What are lump sum investments and lump sum payments? Lump sum investment involves the investment…
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Systematic Withdrawal Plan
Every individual has different financial need. Hence, every investor has a unique investment plan. While some investors prefer investing in a lump sum, some others like to stagger their investments and use a systematic investment plan (SIP). While some investors seek capital growth, some others want regular income from their investments. There are many tools…
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SIP – Systematic Investment Plan
Systematic Investment Plan or SIP is a method of investing in mutual funds wherein an investor chooses a mutual fund scheme and invests the fixed amount of his choice at fixed intervals. SIP investment plan is about investing a small amount over time rather than investing one-time huge amount resulting in a higher return. How…
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Exchange Traded Funds
ETF Meaning ETFs are a sort of investment fund that combines the best features of two popular assets: They combine the diversification benefits of mutual funds with the simplicity with which equities may be exchanged. What is an ETF? An exchange-traded fund (ETF) is a collection of investments such as equities or bonds. ETFs will…