If you have been exploring the mutual fund industry, you must have come across these terms loosely thrown around. Here\u2019s what they actually mean.<\/p>\n
The Net Asset Value (NAV) of a mutual fund represents its per unit market value which is updated on a daily basis. When you buy a mutual fund unit, you buy it at this \u2018price\u2019 and the same goes for selling the units too.<\/li>\n
A scheme\u2019s performance is compared against a benchmark or indices. Typical benchmarks being Sensex & Nifty50. The benchmark index chosen is based on the objective of the fund.<\/li>\n
The amount of money the investment has earned for you over a year is your annualized returns for an investment.<\/li>\n
Assets Under Management is the total value of assets or capital owned by an asset management company (AMC<\/a>).<\/li>\n When you invest in a mutual fund scheme, you are allocated a unique number by the AMC. A user can have multiple folio numbers for a specific scheme of the same AMC.<\/li>\n A scheme riskometer indicates how risky that scheme is, from a spectrum of it being low, moderately low, moderate, moderately high or high. Each scheme has its unique riskometer.<\/li>\n As the name suggests, it implies the fee that is charged by AMC when a user withdraws before the lock-in period is over.<\/li>\n Every mutual fund scheme has a designated SID, created by the AMC. It has all the relevant & mandatory information about the mutual fund scheme such as Investment objective & policies, asset allocation pattern, fee & liquidity provisions. The document also contains information about fund management team details, risk factors, load, past performance, benchmark, unitholder information, AMC branches, investor service centers & official points of acceptance.<\/li>\n It is a score assigned by rating agencies to schemes after assessment of securities based on multiple factors such as risk, historical performance & returns of a fund.<\/li>\n A set period during which an investor is restricted from selling units of a mutual fund. The restriction is imposed by the fund house, in the form of exit loads, or fee that an investor must pay. ELSS funds<\/a> typically have a 3 year lock-in period, while debt or liquid funds have a much shorter lock-in period.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":" If you have been exploring the mutual fund industry, you must have come across these terms loosely thrown around. Here\u2019s what they actually mean. NAV: The Net Asset Value (NAV) of a mutual fund represents its per unit market value which is updated on a daily basis. When you buy a mutual fund unit, youContinue reading “10 Terms Every Smart Investor Must Know”<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":882,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=846"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/882"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Folio Number:<\/h3>\n
Scheme Riskometer:<\/h3>\n
Exit Load:<\/h3>\n
Scheme Information Document (SID):<\/h3>\n
Fund Rating:<\/h3>\n
Lock-in Period:<\/h3>\n