A firm that invests the pooled funds of retail investors in securities in line with the stated investment objectives.
Mutual funds provide a prospectus to potential clients, which includes a description of the fund's strategies, the manager's background, the fund's fee structure and a fund's financials statements.
New Fund Offer (NFO) is a security offering in which investors may purchase units of a new mutual fund. A new fund offer occurs when a mutual fund is launched, allowing the firm to raise capital for purchasing securities.
Net Asset Value (NAV) is the total asset value (net of expenses) per unit of the fund and is calculated by the AMC at the end of every business day. The value of all the securities in the portfolio in calculated daily.
SIP is a plan where investors make regular, equal investment into a mutual fund, in place of a heavy one-time investment.
An equity fund is an open or closed-end mutual fund that invests principally in stocks, allowing investors to buy into the fund and thus buy a basket of stocks more easily than they could purchase the individual securities.
A balanced fund is a mutual fund that generally include both equity and debt instruments, with 50-75 per cent in equity and the rest in debt.
Liquid funds are a type of mutual funds that invest in securities with a residual maturity of up to 91 days.
What is ELSS?
ELSS or Equity Linked Savings Schemes are equity schemes, where investors get tax benefit under Section 80C of the Income Tax Act. These are open ended schemes with 3 years of lock-in period.