The investment target and underlying investments decide the essence of the scheme for the mutual fund. For example, an equity fund or a growth fund is a mutual fund that aims to generate capital appreciation by investing in stock markets. Similarly, a mutual fund aimed at protecting assets by investing in debt markets is a bond fund or an income fund. There may be sub-categories for each of these categories.
NAV is a unit's interest in the scheme and the main performance metric for a mutual fund. Within financial terms, Net Asset Value is the value for each unit of the budget. It is measured as all assets ' market value. In the fund, fewer contributions and costs are split by the fund's remaining number of units. Some schemes advertise on a daily basis their NAVs.
NAV (in Rs. Terms) = Market or Fair Investment Value of Scheme + Current Assets — Current Liabilities and Provision / Number of units outstanding under the Valuation Date Scheme
The current market value of a share of a mutual fund. Calculated daily by taking overall assets from the funds: securities, cash and any accrued earnings, deducting liabilities, and dividing the remaining by the number of outstanding units.
This figure is the total asset base of the fund, net of fees and expenses.
The aggregate value of paid-up equity and free reserves (excluding reserves created from revaluation), reduced by the aggregate value of accumulated losses and unwritten deferred expenditure, including unwritten miscellaneous expenses.
New Fund Offer is like an IPO (Initial Public Offering), except that IPO is sold by a company that tries to go public while NFO is marketed by a Mutual Fund which attempts to launch a new project. If a Mutual Fund wants to launch a new scheme on the market, it will do so through an NFO. The NFO has a date of graduation and an end date. The Mutual Fund advertises to the public about its NFO, which includes potential investors as well as suppliers from the Mutual Fund. Shareholders ' subscription or request is accepted to invest in the NFO during the open time of the NFO. For a total of 15 days, NFOs are open for subscription. The units of the new fund being introduced will be available at face value during this period. This ensures that shareholders at this face value will purchase units from the new scheme.
The Mutual Fund uses the money received during the NFO to buy securities in the portfolio of the new fund after closing the NFO. If the nature of the scheme is open-ended, the new fund will reopen on an ongoing basis, a few days after the NFO end date. If the scheme is a close-ended account, after the NFO is over, it will not open up for further subscription.
A stock index of the National Stock Exchange's top 50 stocks (by free float).
Mutual fund that does not charge interest or commission for the purchase and sale of shares.
In the event of his death, an investor must nominate a candidate to receive his investment. The nominee may be the parent, sibling, son, and so on. Even more than one nominee can be available to investors.
Loans on which the borrower does not allow interest / principal repayment on the basis of the agreed plan.