An Annualized return is the amount of money that has earned for the investor per annum. An annualized return gives a clearer picture when comparing various mutual funds that have traded over different periods of time. However, this is applicable only if investors re-invest their gains every year. In other words, An Annualized return is period returns re-scaled to a period of 12 … [Read more...]
Net Asset Value (NAV)
What is Net Asset Value (NAV)? Net Asset Value (NAV) refers to the price at which an investor buys the units of a mutual fund scheme. It represents the market value per share for a particular mutual fund. NAV is calculated by deducting the liabilities from total asset value divided by the number of shares. An investor can sell units of Mutual Funds on NAV, but the selling … [Read more...]
Equity Linked Savings Scheme (ELSS)
What is an Equity Linked Savings Scheme? Equity Linked Savings Scheme (ELSS) is a kind of mutual fund scheme that helps in saving taxes under Section 80C of the Income Tax Act and invest equity related instruments to generate high returns. In also addition, with the investment in the ELSS Funds an investor can save taxes up to ₹ 46,800 under Section 80C of the Income Tax … [Read more...]
Expense Ratio
What is an Expense Ratio? Under SEBI Mutual Funds Regulations, 1996, the Expense ratio is the annual maintenance charge levied by mutual funds to finance its expenses/ charges. It includes sales & marketing/advertising expenses, administrative expenses, transaction costs, investment management fees, registrar fees, custodian fees, audit fees, etc. of the fund. The expense … [Read more...]
Close-Ended Funds
What is a Close-Ended Funds? A close-ended fund also called “closed-end investment" and "closed-end mutual fund. It is a type of mutual fund that pools resources from investors through issuance of New Fund Offer (NFO). And the units are sold at a price based on Net Asset Value (NAV) of the mutual fund that is launching the NFO. On the other hand, the close-ended fund is a kind … [Read more...]