Closed-end fund

A Closed-End Fund is a type of investment fund that issues a fixed number of shares through an initial public offering (IPO) and then trades on an exchange like a stock. Unlike Open-End Funds, the number of shares outstanding in a Closed-End Fund is fixed and can only be bought or sold on the exchange. … Read more

Open End Fund

An Open-End Fund is a type of mutual fund that issues new shares to investors on an ongoing basis and redeems shares at any time upon the investor’s request. The fund does not have a fixed number of shares outstanding and can issue an unlimited number of shares to meet investor demand. Open-End Funds are … Read more

Rupee Cost Averaging

Rupee Cost Averaging (RCA) is an investment strategy that involves investing a fixed amount of money at regular intervals, regardless of the price of the investment at that time. This approach aims to reduce the impact of market volatility on an investor’s portfolio by spreading out the purchase of investments over a period of time. … Read more

Folio Number

A folio number is a unique identification number that is assigned by mutual fund companies to their investors for tracking their investments in different schemes of the mutual fund. It is like an account number that helps mutual fund companies to identify and track the investments of a particular investor. In other words, A folio … Read more

Compound Annual Growth Rate(CAGR)

CAGR stands for Compound Annual Growth Rate Compound Annual Growth Rate is a representation of the compounded growth of your mutual fund investments. It shows the fund’s average annual growth or decline over a specific period of time. It is a financial metric that represents the average annual growth rate of an investment over a specified … Read more

NAV

Net Asset Value represents the price at which a mutual fund may be bought by an investor or sold back to a fund house. A mutual fund’s NAV is an indicator of its market value. Net Asset Value = [Total Asset Value— Expense Ratio] / Number of Outstanding units

Passive Fund

Passive Fund in Mutual Fund – A fund invest to the exact ratio of the particular index like Nifty50/Sensex digitized and returns are approximately similar to that index.