Advanced Metrics
Alpha
A measure of performance on a risk-adjusted basis. A positive alpha means the fund has outperformed its benchmark index.
Master the terminology of wealth growth and retirement planning. Clear, simple definitions for every concept.
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A measure of performance on a risk-adjusted basis. A positive alpha means the fund has outperformed its benchmark index.
The total market value of the investments that a mutual fund manages on behalf of investors.
A measure of a fund's volatility relative to the overall market. A beta greater than 1 indicates higher volatility than the market.
The mean annual growth rate of an investment over a specified period longer than one year.
A mutual fund that invests primarily in fixed-income securities like government bonds, corporate bonds, and treasury bills.
A mutual fund plan bought directly from the AMC without a distributor. It has a lower expense ratio and higher NAV compared to a regular plan.
A type of equity mutual fund that offers tax deductions under Section 80C of the Income Tax Act, with a mandatory lock-in period of 3 years.
A type of investment fund that is traded on a stock exchange, similar to stocks. It typically tracks an underlying index.
A fee charged by the mutual fund when you redeem or sell your units within a specified period from the date of purchase.
The annual fee charged by a mutual fund to cover management and administration costs. Lower is usually better.
An equity mutual fund that can invest flexibly across large-cap, mid-cap, and small-cap stocks without any strict market cap restrictions.
A mutual fund that invests in a mix of asset classes, typically equity and debt, to balance risk and return.
A mutual fund designed to replicate the performance of a specific index, like the Nifty 50 or Sensex, offering low-cost passive investing.
Your total wealth pool — the sum of all your original investments plus market gains accrued over time.
Profits made on investments held for longer than a specified duration (typically 1 year for equity funds in India). Taxed at 12.5%.
An equity fund that invests in the top 100 companies by market capitalization. Generally considered more stable than mid or small caps.
The duration during which an investor cannot redeem or sell their mutual fund units (e.g., 3 years for ELSS).
An equity fund that invests in companies ranking 101 to 250 in terms of market capitalization, offering higher growth potential but higher risk.
The per-unit market value of a mutual fund. It is calculated by dividing the total value of assets by the number of units outstanding.
The initial launch of a new mutual fund scheme by an AMC to raise capital from the public.
A mutual fund plan bought through a distributor or broker. It has a higher expense ratio than a direct plan due to commission payouts.
Profits made on investments held for less than a specified duration (typically 1 year for equity funds in India). Taxed at 20%.
The maximum percentage of your portfolio withdrawn annually without a high risk of exhausting funds.
An equity fund that invests in companies ranking below 250 in terms of market capitalization. Highly volatile but capable of massive returns.
A strategy where you increase your SIP amount periodically (e.g., annually) by a fixed percentage or amount to combat inflation and build a larger corpus.
A method of investing a fixed sum regularly in a mutual fund, rather than a one-time lump sum. It benefits from rupee-cost averaging.
A facility that allows you to automatically transfer a fixed amount from one mutual fund to another (usually debt to equity) at regular intervals.
A facility to withdraw a fixed amount regularly from a mutual fund, highly tax-efficient for retirement income.
A measure of the total costs associated with managing and operating a mutual fund, expressed as a percentage of its total assets.
A guideline suggesting that if you withdraw 4% of your total corpus in the first year and adjust for inflation, the funds may last 30+ years.
An accurate measure of returns for uneven cash flows like SIPs, accounting for the timing of every installment.