Alpha
Return above benchmark after considering risk exposure.
Definitions A-Z
Mutual fund glossary
Understand key terms quickly with investor-friendly explanations and examples. Use this glossary while reading guides and comparing funds.
Asset Allocation
Distribution of portfolio across equity, debt, and other assets.
AUM
Assets Under Management, the total value of assets managed by a fund.
Beta
Measure of sensitivity to benchmark market moves.
CAGR
Compounded annual growth rate over a period.
Diversification
Spreading investments across exposures to reduce concentration risk.
Exit Load
Fee charged on redemption before a specified period.
Expense Ratio
Annual operating cost charged by a fund as a percentage of assets.
Fund Manager
Professional responsible for implementing a fund strategy.
Hybrid Fund
Fund that combines equity and debt exposure.
Index Fund
Passive fund tracking a benchmark index.
Large Cap
Largest listed companies by market capitalization.
Mid Cap
Medium-sized companies by market capitalization.
NAV
Net Asset Value per mutual fund unit.
Nifty 50
A widely used benchmark index of large listed companies.
Portfolio Overlap
Common securities held across multiple funds you own.
Portfolio Turnover
Rate at which holdings are bought and sold in a fund.
Risk-Adjusted Return
Return measured relative to risk taken.
Sharpe Ratio
Measure of excess return per unit of volatility.
SIP
Systematic Investment Plan with periodic fixed contributions.
Standard Deviation
Statistical measure of return variability.
Volatility
Magnitude and frequency of price or NAV changes.
Yield to Maturity
Estimated annualized return of bonds if held till maturity.