Before we discuss on the types of mutual funds based on Market cap, let’s discuss what is Market Cap or Market Capitalization. Market Capitalization is the total value of outstanding shares of a company. To explain this with example – If the share price of a company is 500 rupees and there are 10000 outstanding … Read more
Expense ratio is the annual maintenance charge levied by mutual fund for managing the fund. It is expressed as a percentage. If a mutual fund scheme has expense ratio of 0.5, it means that the annual maintenance charge would be 0.5% of market value of investment. Let’s understand this with an example. Investor A has … Read more
Exit load is the fee charged by mutual funds when an investor sells or redeems mutual fund units before a certain period of time. This is mostly charged by AMCs in case the redemption is done within a year. Few funds charge it even if the redemption is done in 2 or 3 years. How … Read more
Sectoral funds are the funds which invest 80 percent of the AUM in a particular sector as per SEBI guideline, and thematic funds are the funds which invest 80 percent of the AUM in a particular theme as per SEBI guideline. There could be several sectors in a theme. To explain this with example – … Read more
NAV stands for Net Asset Value. NAV is calculated by subtracting liabilities from total value of all the cash and securities in a fund’s portfolio, and then dividing the calculated value by number of outstanding shares. It is calculated for all the mutual fund schemes at the end of each business day using the closing … Read more
NFO stands for New Fund Offer. It is basically a new scheme launched by an AMC. As the bull run of market continues, there are more and more NFOs getting launched by Mutual Funds. But is it something you should consider for investing or this needs to be avoided? To answer this question, let’s understand … Read more
Portfolio overlap shows us common stocks in 2 mutual fund schemes and calculates the percentage of overlap based on these stocks. There are several platforms wherein we can enter 2 mutual fund schemes and get details of overlap. But is this something we should be concerned about? To answer this question, let’s understand few points … Read more
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 … Read more
In the past few years, there has been remarkable growth in the mutual fund inflow. Apart from AMC websites and applications, there are several other platforms which are making mutual fund investment a seamless process. There is one important point to consider while doing mutual fund investments, which many of us may not consider important. … Read more
With the increase in demand for mutual funds, there are several apps available to do mutual fund investments. In this blog, we will discuss the best apps for investment and tracking your returns. We will also tell you the reason for considering the apps best. As discussed in the previous blog, it’s always better to … Read more
