What is XIRR in mutual funds?
XIRR (Extended Internal Rate of Return) is a method to calculate the annualized return of mutual fund investments with irregular cash flows. Unli...XIRR (Extended Internal Rate of Return) is a method to calculate the annualized return of mutual fund investments with irregular cash flows. Unlike simple returns, XIRR accounts for the timing and amount of each cash flow, providing a more accurate m...
What is expense ratio? how it is calculated?
The expense ratio represents the annual cost of managing and operating a mutual fund, expressed as a percentage of the fund's average assets. It'...The expense ratio represents the annual cost of managing and operating a mutual fund, expressed as a percentage of the fund's average assets. It's calculated by dividing the fund's total annual expenses by its total assets.
Direct vs Regular mutual funds. Which one to choose?
Direct mutual funds are typically the superior choice for most investors due to their significantly lower expense ratios. Direct funds eliminate ...Direct mutual funds are typically the superior choice for most investors due to their significantly lower expense ratios. Direct funds eliminate distributor commissions since you invest directly with the asset management company, leading to higher re...
What is SIP and how does it work?
SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount regularly at predetermined intervals. I...SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount regularly at predetermined intervals. It helps in rupee cost averaging, reduces market timing risk, and builds investment discipline through aut...
What is the difference between growth and dividend options in mutual funds?
Growth option reinvests all profits back into the fund, leading to capital appreciation and higher NAV over time. Dividend option distributes pro...Growth option reinvests all profits back into the fund, leading to capital appreciation and higher NAV over time. Dividend option distributes profits to investors periodically, but the NAV reduces by the dividend amount. Growth option is generally be...
What is NAV in mutual funds?
NAV (Net Asset Value) represents the per-unit market value of a mutual fund. It's calculated by dividing the total value of all securities in the...NAV (Net Asset Value) represents the per-unit market value of a mutual fund. It's calculated by dividing the total value of all securities in the fund's portfolio minus liabilities by the total number of outstanding units. NAV is declared daily after...
What is the lock-in period for ELSS funds?
ELSS (Equity Linked Savings Scheme) funds have a mandatory lock-in period of 3 years from the date of investment. This is the shortest lock-in pe...ELSS (Equity Linked Savings Scheme) funds have a mandatory lock-in period of 3 years from the date of investment. This is the shortest lock-in period among all tax-saving investment options under Section 80C. You cannot redeem your investment before ...