AMC – AMC stands for Asset Management Company. They pool money from individual investors to invest in assets like Stocks, bonds, gold, etc based on the category selected. Examples of AMC are SBI Mutual Fund, Tata Mutual Fund, UTI Mutual Fund, etc.
Folio Number – When we invest in any scheme of mutual fund, a folio number is assigned. The folio has details related to investment done including the name of holder/holders, nomination information, amount invested, current market value of the investment and so on. If you invest in additional scheme of the same AMC with the same combination of holder/holders, you can invest in the same folio. In case you invest in scheme from a different AMC, a new folio will be created.
Expense Ratio – Expense Ratio is the annual maintenance charge that AMC charges for managing the fund.
AUM – AUM stands for Asset Under Management. It is sum of money pooled from all the investors for investing in mutual fund schemes. AUM is calculated both at AMC level and mutual fund scheme level. For Example – An AMC can have AUM of ₹ 90000 crores, wherein it may hold 10 schemes with a scheme having AUM of ₹ 5000 crores, another scheme having AUM of ₹ 10000 crores. Sum of AUM of all the 10 schemes is ₹ 90000 crores.
Portfolio Turnover Ratio – Portfolio turnover ratio indicates the frequency of changes in a fund. It is usually calculated for last one year. Calculation is done as below:
If a fund has sold ₹ 5000 crores stocks and bought ₹ 4000 crores rupees stocks, and has average AUM of ₹ 8000 crores in last one year, lower value of sold and bought stocks will be divided by the average AUM and calculated as a percentage. So, in this case portfolio turnover ratio is 4000/8000 % = 50%.
Higher portfolio turnover ratio means fund has done frequent changes in the assets.