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Glossary

Every metric on this site, explained simply

47 terms — what each number means, how to read it, and what it doesn’t tell you. For the formula behind any of them, see Methodology.

Returns

What the fund made, and over what stretch of time.

Absolute return

Plain point-to-point growth over a period under a year, not annualized.

Used for the 1M, 3M, 6M and YTD figures. A +9% six-month return is +9% for six months — stretching it to an annual rate would imply the next six months repeat it, which nothing here claims.

Absolute, CAGR, XIRR: which return are you looking at?

Rolling returns, and the start date that flatters a fund

CAGRalso: Compound Annual Growth Rate

The steady yearly rate that would have taken the start NAV to the end NAV.

Used for every period of a year or more (1Y, 3Y, 5Y, 10Y, since inception). It smooths the path away: two funds with the same 5Y CAGR can have had wildly different rides, which is what the risk figures are for.

How do mutual funds actually make money?

The magic of compounding: why starting early beats starting big

Absolute, CAGR, XIRR: which return are you looking at?

Rolling returns, and the start date that flatters a fund

Recency bias: why investors keep buying at the top

Case study: a 20-year SIP through every crash

YTDalso: Year to date

Return from 1 January of the current calendar year to the latest NAV.

A moving window — in January it covers days, in December almost a year — so comparing YTD across funds is fair, but comparing it to a 1Y figure is not.

Rolling returns

The same holding period measured from every possible start date, not just today's.

A 3Y rolling series answers "what did a three-year holding usually earn?" instead of "what did the one three-year window ending today earn?". The average, best, worst and share of positive periods are the useful part: a fund whose worst 5Y window is still positive behaved very differently from one whose worst was −20%.

Rolling returns, and the start date that flatters a fund

Since inception

Annualized return over the fund's whole available NAV history.

For Direct plans this starts 1 January 2013, when Direct plans were introduced — not the scheme's original launch, which may be far older. The fund page shows the first date we hold NAV for.

Absolute, CAGR, XIRR: which return are you looking at?

XIRR

The annualized return of a series of cash flows on different dates.

The right measure for a SIP or a real portfolio, where money went in at many prices. CAGR assumes one lump sum invested once; XIRR weights each instalment by how long it was actually invested.

Absolute, CAGR, XIRR: which return are you looking at?

Recency bias: why investors keep buying at the top

Case study: a 20-year SIP through every crash

Your master plan: a 30-year wealth blueprint

Benchmark

The market index a fund's mandate says it is trying to beat.

Every benchmark-relative statistic on this site is computed against the closest matching price index for the fund's category. Debt, arbitrage and cash-like funds get no equity benchmark ratios — measuring them against an equity index would be noise, so those tiles are left off rather than filled.

Active vs passive: can a human beat the market?

How to read a mutual fund factsheet like a pro

Index funds and ETFs: low-cost passive investing explained

Handling underperformance: when to stay and when to exit

Decoding alpha and beta: manager skill versus market risk

Rolling returns, and the start date that flatters a fund

Tracking error and standard deviation in passive funds

Contra funds: betting against the crowd, and what being early costs

Risk

How rough the ride was — the half of the story a return number hides.

Maximum drawdownalso: Max DD

The largest peak-to-trough fall the fund has ever had, over its full history.

The worst it got, measured from a high-water mark to the low that followed. Unlike the other risk figures this one is all-time, not trailing 3Y — a fund launched after 2020 has never met a real crash, and its shallow drawdown says more about its age than its safety.

Active vs passive: can a human beat the market?

Can you lose money in mutual funds? Understanding market risk

Demystifying the riskometer: how to read SEBI’s risk levels

Flexi cap vs multi cap: which strategy offers better flexibility?

Hybrid and balanced advantage funds: the ultimate stress-free ride?

Index funds and ETFs: low-cost passive investing explained

Sectoral and thematic funds: high risk, high reward — or just hype?

The art of asset allocation: it decides more than fund selection ever will

Goal-based investing: mapping dreams to specific buckets

Handling underperformance: when to stay and when to exit

Decoding alpha and beta: manager skill versus market risk

Sharpe and Sortino: measuring risk-adjusted returns

Factor investing and smart beta: beyond market-cap weighting

The psychology of a market crash: behavioural finance that survives contact

Micro-cap funds: the riskiest edge of Indian equity

Infrastructure and PSU funds: riding the government capex cycle

Banking and financial services funds: doubling a bet you already hold

Debt and gold as shock absorbers: hedging an equity portfolio

Sequence-of-returns risk: why the order of returns decides retirement

Loss aversion: why a fall hurts twice as much as a rise helps

Anatomy of a legendary fund run — and why it ended

AI and algorithms in fund management: hype and reality

Sharpe ratio

Return above the risk-free rate, per unit of total volatility.

How much you were paid for the swings you sat through. Higher is better; roughly, above 1 is good and below 0 means a fixed deposit would have done better. Computed with a 6.5% risk-free rate, so it is only comparable to other Sharpe figures on this site.

How to read a mutual fund factsheet like a pro

Sharpe and Sortino: measuring risk-adjusted returns

Treynor and information ratio: advanced tools for comparing funds

Consumption and FMCG funds: the defensive play that isn't always defensive

Sortino ratio

Like Sharpe, but only downside moves count as risk.

Sharpe penalizes a fund for jumping upwards; Sortino doesn't. When Sortino is much higher than Sharpe, the fund's volatility is mostly good volatility.

Sharpe and Sortino: measuring risk-adjusted returns

Treynor and information ratio: advanced tools for comparing funds

Benchmark-relative

How the fund behaved against its index. All computed from 36 monthly returns, so a fund needs about three years of history to show any of them.

Alphaalso: Jensen's alpha

Annualized return above what the fund's market exposure alone would predict.

Positive alpha is the manager adding something the index didn't hand them. It is a residual, so it is only as meaningful as the benchmark fit — check R² before believing an alpha figure.

Decoding alpha and beta: manager skill versus market risk

Anatomy of a legendary fund run — and why it ended

Beta

How hard the fund moves when the index moves. 1 = in step.

Beta 1.2 means it tends to amplify the index by a fifth in both directions; 0.8 means it dampens it. It says nothing about direction of returns, only sensitivity.

How to read a mutual fund factsheet like a pro

Decoding alpha and beta: manager skill versus market risk

Treynor and information ratio: advanced tools for comparing funds

Treynor ratio

Excess return per unit of beta rather than per unit of total volatility.

Sharpe divides by all risk; Treynor divides only by market risk — the part you can't diversify away. Useful when the fund is one holding inside a wider portfolio.

Treynor and information ratio: advanced tools for comparing funds

Information ratio

Return above the benchmark, per unit of tracking error.

Consistency of outperformance rather than its size. A fund beating its index by 2% every year scores far better than one beating it by 6% then trailing by 4%.

Treynor and information ratio: advanced tools for comparing funds

Anatomy of a legendary fund run — and why it ended

AI and algorithms in fund management: hype and reality

Upside capture

The share of the index's gains the fund captured in months the index rose. 100 = matched it.

Above 100 means it beat the index on the way up. Read it alongside downside capture — capturing 110% of the upside is worth little if it also takes 120% of the falls.

Downside capture

The share of the index's losses the fund took in months the index fell. Lower is better.

80 means the fund fell only four-fifths as far as the index did. The pair to look for is high upside capture with lower downside capture.

Dividend yield funds: do high-dividend stocks make better funds?

Consumption and FMCG funds: the defensive play that isn't always defensive

Portfolio

What the fund actually holds, aggregated from its published holdings.

AUMalso: Assets Under Management

The total money the scheme currently manages.

Sourced from AMFI's quarterly average AUM disclosure, so it lags the market by up to a quarter. Size cuts both ways: it signals staying power, but a very large small-cap fund can struggle to enter and exit positions without moving prices.

What a mutual fund actually is (and why it is not a piggy bank)

Decoding the alphabet soup: AMC, trustee, custodian and registrar

Micro-cap funds: the riskiest edge of Indian equity

ESG funds: investing with a conscience, or paying for a label?

Herd mentality: why buying what everyone else owns fails

Anatomy of a legendary fund run — and why it ended

P/E ratioalso: Price to earnings

The weighted-average P/E of the fund's equity holdings.

Roughly, what the portfolio costs per rupee of the underlying companies' earnings. Only meaningful against funds in the same category — a small-cap fund and a large-cap fund carry structurally different P/Es. Shown only where we have enough holdings coverage to compute it honestly.

Value vs growth: which style actually wins over the long run?

Infrastructure and PSU funds: riding the government capex cycle

Consumption and FMCG funds: the defensive play that isn't always defensive

P/B ratioalso: Price to book

The weighted-average price-to-book of the fund's equity holdings.

Price against the accounting net worth of the underlying companies. More informative for banks and financials than for asset-light businesses, where book value captures little of what the company is.

Value vs growth: which style actually wins over the long run?

Banking and financial services funds: doubling a bet you already hold

Average market cap

The weighted-average size of the companies the fund holds.

The quickest check that a fund is doing what its name says — a "large cap" fund with a mid-cap average is taking risk its label doesn't advertise.

Micro-cap funds: the riskiest edge of Indian equity

Large / mid / small cap split

How the equity portfolio divides across the three SEBI size bands.

SEBI ranks all listed companies by market cap: 1–100 are large cap, 101–250 mid cap, 251 onwards small cap. Category rules bind against these bands (a large-cap fund must hold at least 80% large caps), so the split shows both mandate compliance and where the risk really sits.

How to read a mutual fund factsheet like a pro

Equity funds demystified: large cap, mid cap, small cap and the SEBI rulebook

Flexi cap vs multi cap: which strategy offers better flexibility?

Core and satellite: how to build a portfolio you can actually maintain

Handling underperformance: when to stay and when to exit

Fund manager changes: should you panic when the captain leaves?

Focused funds: is holding only 30 stocks conviction or recklessness?

ASMalso: Additional Surveillance Measure

An NSE flag on a stock showing unusual price or volume activity.

Flagged names carry higher margins and, at stage II, trade-for-trade settlement. It is the exchange's response to trading behaviour, not a verdict on the company or the fund. A diversified fund holding a fraction of a percent in one flagged small cap is ordinary; several percent is worth noticing.

Costs & scheme terms

What you pay, and the rules attached to buying and selling units.

Expense ratioalso: TER, Total Expense Ratio

The fund's annual running cost, as a percentage of assets.

Already deducted from NAV — you never see a bill, and every return figure here is net of it. It is the one number about a fund that is known in advance and compounds against you, which is why it carries 20% of the star rating.

How do mutual funds actually make money?

Active vs passive: can a human beat the market?

Direct vs Regular plans: how a commission you never see costs you lakhs

Exit load and expense ratio: the hidden costs of investing

How to read a mutual fund factsheet like a pro

Index funds and ETFs: low-cost passive investing explained

Fund of funds: what happens when a mutual fund buys mutual funds?

Core and satellite: how to build a portfolio you can actually maintain

Decoding alpha and beta: manager skill versus market risk

Tracking error and standard deviation in passive funds

What is portfolio turnover ratio? Decoding a fund’s trading activity

Credit risk and yield-to-maturity in debt funds

Factor investing and smart beta: beyond market-cap weighting

Focused funds: is holding only 30 stocks conviction or recklessness?

Dynamic bond funds: letting a manager call the interest-rate cycle

How SEBI's rules actually protect a retail investor

Teaching children about money through mutual funds

Your annual portfolio audit: a step-by-step health check

Blockchain and tokenisation: the future of fund record-keeping

AMC apps vs third-party platforms: where should you invest?

AIFs, PMS and mutual funds: what the ₹1 crore actually buys

Thirty years back, thirty years ahead: how Indian funds evolved

Growth vs IDCW option

Whether gains stay invested or get paid out.

Growth compounds everything inside the fund. IDCW (Income Distribution cum Capital Withdrawal, formerly "dividend") pays some out — but it is your own capital coming back, and the NAV drops by the amount paid. IDCW is not extra income.

What is NAV — and does a low NAV mean a cheap fund?

Growth vs IDCW: which option should you pick?

The twelve mistakes that cost first-time SIP investors the most

How to clean up a portfolio with too many schemes

Dividend yield funds: do high-dividend stocks make better funds?

Building a passive income stream from mutual funds

Analysis paralysis: how to stop researching and start

Lock-in

A period in which units cannot be redeemed at all.

Distinct from exit load, which lets you leave for a fee. Three years for ELSS (the tax-saving category); most open-ended funds have none.

ELSS: save tax while building wealth — if you are on the right regime

Mutual fund taxation decoded: short-term vs long-term capital gains

Structuring a portfolio for your child's higher education

Stamp duty

A flat 0.005% government levy on every mutual fund purchase.

In force since 1 July 2020, identical for every scheme and every AMC, applied to purchases and switches in but not to redemptions. Too small to influence a fund choice; included so the cost picture is complete.

How mutual fund investing actually works: follow the money, live

Exit load and expense ratio: the hidden costs of investing

Minimum SIP / lumpsum

The smallest instalment and the smallest one-time amount the scheme accepts.

Set by the AMC and occasionally revised. Read from the scheme's own disclosures, so a blank means we haven't sourced it for that plan, not that there is no minimum.

The mandatory checklist: what KYC is and how to complete it online

Nomination: two minutes now, or a court process for your family later

Folio numbers: why you have several and when to consolidate

AIFs, PMS and mutual funds: what the ₹1 crore actually buys

NFOalso: New Fund Offer

A scheme's initial subscription window, before it starts trading.

Units are offered at ₹10, which is not a discount — it is an arbitrary starting NAV. An NFO has no track record, so nothing on this site can rate it; there is rarely a reason to prefer one over an existing fund with a decade of history.

What a mutual fund actually is (and why it is not a piggy bank)

What is NAV — and does a low NAV mean a cheap fund?

Sectoral and thematic funds: high risk, high reward — or just hype?

Recency bias: why investors keep buying at the top

Herd mentality: why buying what everyone else owns fails

Tax

Indian capital-gains treatment as it applies to mutual fund redemptions. Rates are FY 2025-26 and exclude surcharge, cess and STT.

LTCGalso: Long-term capital gains

Gains on units held past the long-term threshold — 12.5% where it applies.

Equity-oriented funds qualify after one year, and the first ₹1.25 lakh of long-term gains per financial year is exempt. Debt funds bought after April 2023 get no long-term rate at all — every rupee is taxed at slab, whatever the holding period.

Mutual funds vs fixed deposits: which risk are you willing to see?

Growth vs IDCW: which option should you pick?

Hybrid and balanced advantage funds: the ultimate stress-free ride?

ELSS: save tax while building wealth — if you are on the right regime

International funds: diversifying beyond the economy you already earn in

Gold funds and gold ETFs: paper gold versus the jewellery box

Fund of funds: what happens when a mutual fund buys mutual funds?

The art of asset allocation: it decides more than fund selection ever will

SWP: creating your own monthly pension

Portfolio rebalancing: when and why you must sell winning assets

Handling underperformance: when to stay and when to exit

Fund manager changes: should you panic when the captain leaves?

How to clean up a portfolio with too many schemes

Mutual fund taxation decoded: short-term vs long-term capital gains

Estate planning for mutual fund investors: transmission and legalities

Building a core-satellite portfolio with international exposure

The 4% rule vs an SWP: funding early retirement in India

Building multi-generational wealth with mutual funds

How to invest a windfall: inheritance, bonus, property sale

Tactical asset allocation: shifting weights on valuation

Tracing and claiming a deceased relative's mutual funds

Automated rebalancing: robo-advisor or do it yourself?

How inflation quietly eats a savings account

Your annual portfolio audit: a step-by-step health check

AIFs, PMS and mutual funds: what the ₹1 crore actually buys

Ratings & classification

How funds are grouped and scored here.

Star rating

Our own 1–5 stars: 60% performance, 15% risk, 10% cost, 15% downside.

Each component is a percentile against the fund's own peer group, combined into a 0–100 score and banded into stars. A 3Y record is mandatory — no three years, no rating. It is computed here from public data, not bought from a rating agency, and the full working is on the methodology page.

Handling underperformance: when to stay and when to exit

Recency bias: why investors keep buying at the top

Herd mentality: why buying what everyone else owns fails

Anatomy of a legendary fund run — and why it ended

Ways of investing

The transaction types the calculators model.

Step-up SIPalso: Top-up SIP

A SIP whose instalment rises by a set percentage each year.

Tracks a rising income instead of freezing the contribution at what you could afford on day one. Over a long horizon the increment usually matters more to the final corpus than the return assumption does.

The magic of compounding: why starting early beats starting big

SIP 101: the secret weapon of disciplined investing

SIP or lumpsum: when should you put it all in at once?

Goal-based investing: mapping dreams to specific buckets

Structuring a portfolio for your child's higher education

How inflation quietly eats a savings account

Your master plan: a 30-year wealth blueprint

Lumpsum

A single one-time investment.

Fully exposed from day one, so the entry date matters far more than it does for a SIP. Its return is a plain CAGR rather than an XIRR.

SIP or lumpsum: when should you put it all in at once?

Rupee-cost averaging: why market crashes are your best friend

How to invest a windfall: inheritance, bonus, property sale

SWPalso: Systematic Withdrawal Plan

A fixed amount redeemed on a schedule — a SIP in reverse.

The usual way to draw an income from a corpus. Each withdrawal is a redemption, so each one is a taxable event under FIFO, and withdrawing faster than the fund grows will exhaust it.

SWP: creating your own monthly pension

Dividend yield funds: do high-dividend stocks make better funds?

The 4% rule vs an SWP: funding early retirement in India

Building multi-generational wealth with mutual funds

Building a passive income stream from mutual funds

Sequence-of-returns risk: why the order of returns decides retirement

Your master plan: a 30-year wealth blueprint

STPalso: Systematic Transfer Plan

A scheduled move from one scheme to another within the same fund house.

Typically parking a lumpsum in a liquid fund and transferring into equity over several months. Each transfer is a redemption from the source fund, so it is taxed like one.

STP: how to deploy a lump sum without betting on one date

Structuring a portfolio for your child's higher education

How to invest a windfall: inheritance, bonus, property sale

Tactical asset allocation: shifting weights on valuation