Funds, ETFs & Index Investing — 55 Terms Defined

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

Thematic Fund Funds, ETFs & Index Investing qualitative An equity fund investing at least 80% in companies linked by a theme that spans multiple sectors. Test: minimum 80% allocation to stocks selected by a stated theme rather than by a single sector classification

Total Return Index Funds, ETFs & Index Investing index points An index variant that assumes dividends are reinvested, so it measures the full return from holding the constituents. Total Return = Price Return + Dividend Yield, compounded over the period

Tracking Difference Funds, ETFs & Index Investing % The gap between a passive fund's return and its index's return over a period. Tracking Difference = Fund Return - Index Return over the same period

Units Funds, ETFs & Index Investing shares The divisions of a mutual fund scheme that represent an investor's proportional ownership of the pool. Units Allotted = Amount Invested / Applicable NAV