Knowledge Center

MUTUAL FUND BASICS

What is Absolute Return?

Absolute Returns helps investors to calculate the simple returns on their initial investment.

What is CAGR return?

CAGR stands for Compounded Annual Growth Rate. It is the growth rate that your initial investment would need to experience to grow to a set level over a specified period of time.

What is FATCA?

FATCA is a United States (US) Federal Law, to improve compliance of US tax citizens who have foreign financial assets and offshore accounts

Can NRI’s invest in Mutual Funds?

Yes, Non Resident Indians (NRI) and Persons of Indian Origin (PIO) can invest in Indian Mutual Funds on a full repatriation as well as non-repatriation basis the completion of KYC procedure and other formalities if applicable

What is Repurchase/Redemption price?

The Repurchase/Redemption Price is the price per Unit at which a Mutual Fund would ‘repurchase’ the units

What is Purchase Price/ Sale Price?

Sale Price is the price payable per unit by an investor for purchase of units (subscription) and/or switch-in from other schemes of a mutual fund.

What is KYC?

KYC is a process to capture and validate customer details before a folio is created to begin transacting in mutual funds.

What is Switch in and Switch out?

Switch in & Switch out is a facility offered by mutual funds to their investors with an option to switch their investment from one open ended scheme to another

What is SWP?

A Systematic Withdrawal Plan (SWP) is a facility that allows an investor to withdraw money from an existing mutual fund scheme at predetermined intervals.

What is STP?

Systematic Transfer Plan (STP) is a facility offered by mutual fund schemes to facilitate investors transferring a specified amount in as disciplined manner from one scheme to another.

What is SIP?

Systematic Investment Plan (SIP) is a facility offered by mutual fund schemes to facilitate investors in investing a specified amount in a disciplined manner.

What is Net Asset Value (NAV) of a Scheme?

The NAV of the scheme indicates its market value at which an investor can invest or redeem their investments.

What are the different types of Mutual Fund to invest in?

An investor has an option to invest in multiple schemes of mutual fund available in the market basis one’s investment objective, risk appetite & investment horizon.

Why Invest in a Mutual Fund?

There are several reasons why investing in mutual funds is a healthy investment option to achieve one’s investment objective or a financial goal.

How is Mutual Fund set up?

A mutual fund is set up in the form of a trust, which comprises of sponsor(s), trustees, an asset management company (AMC) and a custodian.

What is a Mutual Fund?

A mutual fund is a type of investment instrument available to investors who have a common investment objective.

Systematic Withdrawal Plan in Mutual Fund

Systematic Withdrawal Plan is most beneficial for investors who want to receive a regular cash flow, especially the senior citizens.

The Power of Systematic Investment Planning

It is through the power of SIP Mutual Fund Investment method; you can achieve your long-term financial goals and generate wealth. Click to know how.