Axis Money IQ Knowledge Nugget - 190

Investment Jargon You should know

• AMC (Asset Management Company)

AMC refers to a company managing investors' money. AMC is appointed by the company that establishes the mutual fund. Investors' money is pooled in and invested in various securities as per mutual fund investment objectives set by the AMC. In addition to mutual funds, the AMC may also manage hedge funds and pension plans.

• NAV (Net Asset Value)

NAV is the fund's market value per unit. It is calculated as (Fund assets- Fund liabilities, Outstanding fund units. NAV is calculated daily at the end of the trading session and indicates the mutual fund's performance over a period.

• SIP (Systematic Investment Plan)

SIP means staggered investing in a mutual fund scheme at periodic intervals, which could be weekly, monthly, quarterly, annually, or semi-annually. It enables a disciplined approach to investing.

• Mutual fund-Growth Option

Mutual funds offer 2 types of plans- Growth and Divide.. Under the growth option, instead of paying out interest, bonus, or dividend, it is reinvested in the scheme. This reflects in the NAV of the fund. The investor gets these returns at the time of redemption.

• Load

Mutual funds may levy entry and exit loads to meet their operating expenses. Fees charged during the first investment is the Entry load, and that charged at the time of redemption is the Exit load. At present, mutual funds cannot charge entry load on any of their schemes.

For more nuggets around mutual funds, do visit Axis Money IQ

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trust Act 1882, sponsored by Axis Bank Ltd. (liability restricted to ₹1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Ltd. Is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.