Funds, ETFs & Index Investing

The plan option under which a fund periodically distributes part of the NAV to unit holders as income distribution cum capital withdrawal.

Post-Payout NAV = Pre-Payout NAV - Amount Distributed per Unit ₹

The indicative net asset value of an ETF, computed and published continuously through the trading day.

iNAV = (Live Value of the Underlying Basket + Cash Component) / Units Outstanding ₹

Funds, ETFs & Index Investing

A rule-based measure of the value of a defined group of securities, used to represent a market or segment.

Index Value = (Current Free-Float Market Capitalisation of Constituents / Base Market Capitalisation) x Base Index Value index points

Funds, ETFs & Index Investing

A mutual fund that seeks to replicate an index's holdings and return rather than to beat it.

Test: the fund holds constituents in index proportions and measures itself by tracking difference rather than by outperformance qualitative

Funds, ETFs & Index Investing

The periodic revision of an index's constituents and weights according to its published rules.

Test: constituents are reviewed on a stated schedule against eligibility criteria, with additions and deletions announced in advance qualitative

Funds, ETFs & Index Investing

The rule determining how much of an index each constituent represents.

Free-Float Weight = Constituent's Free-Float Market Capitalisation / Sum of All Constituents' Free-Float Market Capitalisations %

Funds, ETFs & Index Investing

A fund giving Indian investors exposure to securities listed outside India.

Return in Rupees = (1 + Foreign Market Return) x (1 + Currency Change) - 1 %