Funds, ETFs & Index Investing
6 terms
Scheme Categorisation
Funds, ETFs & Index Investing
qualitative
SEBI's framework defining standard mutual fund categories with mandated investment characteristics.
Test: the scheme's holdings satisfy the allocation and eligibility rules prescribed for its declared category
Sectoral Fund
Funds, ETFs & Index Investing
qualitative
An equity fund that invests at least 80% of its assets in companies from a single sector.
Test: minimum 80% allocation to one defined sector, such as banking, pharmaceuticals or technology
Smart Beta
Funds, ETFs & Index Investing
qualitative
A rules-based index strategy that weights constituents by a chosen factor rather than by market capitalisation.
Test: constituent weights are determined by a published rule based on a factor such as value, quality, momentum, low volatility or equal weight
Systematic Investment Plan
Funds, ETFs & Index Investing
₹
An arrangement to invest a fixed amount in a mutual fund at regular intervals, usually monthly.
Future Value = Instalment x [((1 + r) raised to n - 1) / r] x (1 + r), where r is the periodic return and n the number of instalments
Systematic Transfer Plan
Funds, ETFs & Index Investing
₹
An arrangement to move a fixed amount at regular intervals from one scheme to another within the same fund house.
Test: units are redeemed from the source scheme and invested in the target scheme on a stated schedule
Systematic Withdrawal Plan
Funds, ETFs & Index Investing
₹
An arrangement to redeem a fixed amount from a mutual fund at regular intervals.
Units Redeemed each period = Withdrawal Amount / NAV on the withdrawal date