The SEBI Risk-o-meter is a graphical representation of the level of risk associated with a particular mutual fund scheme. Introduced by the Securities and Exchange Board of India (SEBI), this visual tool classifies the risk into six levels, helping investors…
Equity Linked Savings Scheme (ELSS) funds are a category of mutual funds that invest predominantly in equity shares. These are the only mutual fund types eligible for deduction under Section 80C of the Income Tax Act, 1961. The deduction reduces…
Mutual fund taxation refers to the income tax applied to profits, known as capital gains, when an investor redeems or sells mutual fund units. These gains arise from the difference between the redemption value and the purchase cost. One key…
Stamp duty on mutual funds is a small government levy applied when new mutual fund units are issued to an investor in any scheme. It is charged at the time of purchase or allotment of units, similar to how a…
Mutual funds in India involve certain event-based costs that are separate from ongoing expenses like the total expense ratio (TER). Transaction charges and exit loads are one-time fees applied at specific triggers, such as onboarding through distributors or early redemption…
The expense ratio in mutual funds represents the annual ongoing charge deducted from a scheme’s assets to cover operational costs. This charge is expressed as a percentage of the scheme’s daily net assets and is reflected in the Net Asset…
Solution-oriented mutual funds are a specific category defined by SEBI for investors planning for major life goals, such as retirement or a child’s future needs. These schemes come with built-in structural features to align investments with long-term horizons. As per…
Fund of Funds and International Funds A fund of funds (FoF) is a mutual fund scheme that invests primarily in units of other mutual funds rather than directly in stocks, bonds, or securities. An international fund, also known as an…
Smart beta funds, also known as factor-based funds, are passive investment options that track rules-based indices to provide exposure to specific stock characteristics beyond market capitalisation weighting. Unlike traditional index funds that weight stocks by company size, smart beta funds…
Equity savings funds (ESS) are a specific category of open-ended hybrid mutual funds under SEBI regulations. These funds maintain a portfolio mix of direct equity investments, hedged arbitrage positions, and debt or money market instruments. Many Indian households view them…