The Total Expense Ratio is the annual fee charged by the mutual fund scheme for managing a mutual fund scheme. The TER covers all the expenses the mutual fund incurs such as transaction costs, investment management fees, registrar fees, custodian fees, audit fees, distributor commission, sales & marketing, administrative expenses etc. TER is calculated as
Net Asset Value (NAV) is the per-unit price of a mutual fund scheme. It’s calculated as: NAV = (Total Market Value of Assets – Liabilities) ÷ Total Number of Units Outstanding In the above formula, assets include the market value of all investments held by the mutual fund scheme, while liabilities are expenses, management fees
Yes, you can take a loan against mutual fund units. Many banks and NBFCs offer loans against mutual fund holdings, typically up to 50-80% of the fund’s market value. This is a secured loan where your mutual fund units are pledged as collateral. The interest rate varies based on the lender and the type of
Yes, you can withdraw your money from most mutual funds anytime. However, some mutual fund schemes, like ELSS funds (Tax Saver Funds), have a lock-in period. For equity mutual funds, it generally takes 3 business days to process the withdrawal, while debt funds may take up to 1-2 business days. However, withdrawing before a specified
