Mutual Funds
Glossary

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.

SIP or Systematic Investment Plan refers to the practice of investing a constant amount regularly, generally every month. SIP ensures that the investors' acquisition costs are approximated to the average NAV, as when the market will go up fewer units will be bought and when the markets come down more units will be bought. However it does not offer protection from losses.

This is a mirror image of an SIP only here the investor withdraws a constant amount regularly. This is again aimed at getting averaging effect mentioned above.

This ratio reflects the fund’s operating expenses, expressed as a percentage of its total assets and covers the following:

• Management fees, such as fund manager’s remuneration.
• Operational costs related to auditing or regulatory compliance.
• Administrative charges for record-keeping and customer service.