The Total Expense Ratio is the annual fee charged by the mutual fund scheme for managing your money. The TER covers the expenses for managing a mutual fund scheme – such as sales & marketing / advertising expenses, administrative expenses, transaction costs, investment management fees, registrar fees, custodian fees, audit fees calculated as a percentage
NAV (Net Asset Value) is the per-unit price of a mutual fund. It’s calculated as:NAV = (Total Market Value of Assets – Liabilities) ÷ Total Number of Units Outstanding.Assets include the market value of all investments held by the fund, while liabilities are expenses and management fees. NAV is calculated at the end of each
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 mutual funds, but it depends on the type of fund. Open-ended mutual funds allow withdrawals at any time, while close-ended funds have a fixed maturity period. Most open-ended mutual funds allow withdrawals (also known as redemptions) at any time. For equity mutual funds, it generally takes 1-3 business
