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Mutual Funds Day 19: MultiCap Fund

Over the next few chapters, we will discuss the various classifications of Equity funds. Mutual funds have three main categories

1. Equity Funds
2. Debt Funds
3. Hybrid Funds

Mutual Funds Day 18: Market Capitalization & Free Float

Mutual Funds Day 17: Auto Pilot Mode, No Manual Control Available

When you opt for a Mutual Fund, the decision to buy/sell stocks is taken by the Fund Manager. Even though you provide the capital, you have no say in the stock-picking process. This could be an advantage if you are…

Mutual Funds Day 16: No Guaranteed Returns

You might have already heard these words “Mutual Fund investments are subject to market risks, read all scheme related documents carefully.” AMCs and MF houses are supposed to provide this disclaimer in all their mandatory documents as well as…

Mutual Funds Day 15: Expense Ratio

If you know what stock to buy and hold for life — then your job is super easy. Everyone else might…

Mutual Funds Day 14: Tax Savings Option. ELSS Funds.

When you buy stocks, it is mainly considered an investment. Investment in stocks is what people do with their disposable income i.e. the amount left after consumption & savings. And investments rarely give a TAX benefit. Only one…

Mutual Funds Day 13: AUM

Assets Under Management (AUM) is a measure of the popularity of a Mutual Fund. When you sum up the investments done by all the investors you get the AUM. A higher AUM along with a growing AUM shows that more and more investors are continuing to invest their capital in the specific…

Mutual Funds Day 12: Units

The quantity of Mutual Funds allocated to you is called Units. In the last chapter we learned about NAV, we will understand the units allocated based on an example.

Suppose you have a MF SIP of Rs25000 every month.

Mutual Funds Day 11: NAV

NAV or Net Asset Value is an important concept in Mutual Funds. Most customers buy a mutual fund for a specific amount and for a specific period. For example, Rs25000 SIP every month. They are not really worried about the price of each unit and the number of units allotted.

Mutual Funds Day 10: Active versus Passive Funds

Active means there is a direct involvement of labor & Passive means utilizing systematic or computer-generated instructions to do the stock pickings.