What is a Dividend Reinvestment Plan?

Dividend plans have an additional option for reinvestment of income distribution. Under this plan, dividends declared by a fund are reinvested on behalf of the investor, thus increasing the number of units held by the investors.

What are sector-specific funds/schemes?

Such mutual fund schemes invest in the securities of only a specific sector or industry, as specified in the offer documents, e.g., Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, Information Technology (IT), Banks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. […]

What are Gilt Funds?

These funds are also income funds and their aim is to provide preservation of capital, liquidity and moderate returns on investment. Such funds are suitable for investors looking for safety as well as to generate moderate returns on surplus funds for a short period of time.

What are Money Market or Liquid Funds?

These funds are also income funds and their aim is to provide preservation of capital, liquidity and moderate returns on investment. Such funds are suitable for investors looking for safety as well as to generate moderate returns on surplus funds for a short period of time.

What are Closed-Ended Funds/Schemes?

Close-ended mutual funds schemes are available for subscription only during a specified time period. They have a fixed stipulated maturity date. A close-ended fund or scheme has a stipulated maturity period e.g. 3-5 years. The fund is open for subscription only during a specified period at the time of launch […]

What are Open-Ended Funds/Schemes?

An Open-ended mutual fund schemes are available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. It allows investors to enter and exit the fund anytime after the NFO, whereas a close-ended fund restricts the entry and exit of investors to the NFO […]

What is the Net Asset Value (NAV) of a scheme?

The performance of a particular scheme of a mutual fund is denoted by its NAV. In simple words, NAV is the market value of the securities held by the scheme. Since the market value of securities changes every day, NAV of a scheme also varies on day to day basis. […]

What is a mutual fund?

Mutual funds are made up of all the money pooled in by a large number of investors. This pool of money is managed by a portfolio manager, who invests the funds in various financial instruments.

What are price bands?

The exchanges have set a price band for all securities. The price bands act as a limit beyond which the price is not allowed to move on a particular day and the exchanges will reject orders that are set outside the minimum and the maximum of the price range. For […]