Glossary
Plain-language definitions of the mutual fund terms you will meet on this site and in a scheme document. No jargon, no scheme names, and no numbers we cannot source. Where a term has a fuller explainer, it links to it.
AMC (Asset Management Company) / fund house
ગુજરાતી: ફંડ હાઉસ / એસેટ મેનેજમેન્ટ કંપની (AMC) हिन्दी: फंड हाउस / एसेट मैनेजमेंट कंपनी (AMC)
The SEBI-registered company that runs a mutual fund’s schemes and manages the portfolio. Our articles describe fund houses generically and do not name one; the NAV lookup and New Fund Offers pages show fund-house names as they appear in AMFI’s public data.
CAGR and XIRR
ગુજરાતી: CAGR અને XIRR (વળતર માપવાની બે રીત) हिन्दी: CAGR और XIRR (रिटर्न मापने के दो तरीके)
Two ways of expressing a rate of return over time. CAGR describes a single lump sum growing over a period; XIRR handles many cash flows on different dates, which is why it is the measure that fits an SIP. We define what they measure; the only scheme returns on this site are each scheme’s own past returns on the NAV lookup, computed from AMFI NAV history.
ELSS (Equity Linked Savings Scheme)
ગુજરાતી: ELSS (ઇક્વિટી લિંક્ડ સેવિંગ્સ સ્કીમ) हिन्दी: ELSS (इक्विटी लिंक्ड सेविंग्स स्कीम)
An equity mutual fund category that qualifies for a deduction under section 80C of the old tax regime (section 123 of the Income-tax Act, 2025, since 1 April 2026) and carries a three-year lock-in. ELSS and 80C goes into it.
Equity, debt and hybrid
ગુજરાતી: ઇક્વિટી (શેર), ડેટ (બોન્ડ) અને હાઇબ્રિડ (મિશ્ર) हिन्दी: इक्विटी (शेयर), डेट (बॉन्ड) और हाइब्रिड (मिश्रित)
Broad categories describing what a scheme mainly holds: shares (equity), bonds and similar instruments (debt), or a mix of the two (hybrid). Equity, debt and hybrid compares them.
Exit load
ગુજરાતી: એક્ઝિટ લોડ (વહેલા ઉપાડ પરનો ચાર્જ) हिन्दी: एग्ज़िट लोड (जल्दी निकासी पर शुल्क)
A charge some schemes apply if you redeem within a stated period after investing, expressed as a percentage of the amount withdrawn.
Expense ratio
ગુજરાતી: એક્સપેન્સ રેશિયો (ખર્ચ ગુણોત્તર) हिन्दी: एक्सपेंस रेशियो (व्यय अनुपात)
The annual cost of running a scheme, expressed as a percentage of its assets and deducted before the NAV is struck — so you never pay it as a separate bill.
Folio
ગુજરાતી: ફોલિયો (ફંડ હાઉસમાં તમારો ખાતા નંબર) हिन्दी: फोलियो (फंड हाउस में आपका खाता नंबर)
Your account number with a fund house, under which your holdings in its schemes are recorded. What a folio is covers it.
KRA (KYC Registration Agency)
ગુજરાતી: KRA (KYC રજિસ્ટ્રેશન એજન્સી) हिन्दी: KRA (KYC पंजीकरण एजेंसी)
A SEBI-regulated body that holds and shares your verified KYC record so it can be used across fund houses.
KYC (Know Your Customer)
ગુજરાતી: KYC (ગ્રાહકની ઓળખ ચકાસણી) हिन्दी: KYC (ग्राहक की पहचान जाँच)
The one-time identity verification required across the mutual fund industry before you can invest, completed and validated with a KRA. Completing your KYC walks through it.
Lump sum
ગુજરાતી: લમ્પસમ (એકસાથે રોકાણ) हिन्दी: लम्पसम (एकमुश्त निवेश)
Investing a single amount in one go, rather than spreading it across dates as an SIP does. SIP or lump sum compares the two.
Mutual fund
ગુજરાતી: મ્યુચ્યુઅલ ફંડ (સહિયારું રોકાણ ભંડોળ) हिन्दी: म्यूचुअल फंड (साझा निवेश फंड)
A pooled investment that collects money from many investors and invests it, to a stated objective, in a portfolio run by a fund house; you hold units for your share. What a mutual fund is starts from the top.
NAV (Net Asset Value)
ગુજરાતી: NAV (ચોખ્ખી સંપત્તિ મૂલ્ય) हिन्दी: NAV (शुद्ध परिसंपत्ति मूल्य)
The per-unit price of a scheme on a given day: the value of its holdings less liabilities, divided by units in issue. A high NAV is not expensive and a low NAV is not cheap. NAV, explained takes it apart, and the NAV lookup shows the published figure.
Redemption
ગુજરાતી: રિડેમ્પશન (યુનિટ પાછા વેચીને પૈસા ઉપાડવા) हिन्दी: रिडेम्पशन (यूनिट वापस बेचकर पैसा निकालना)
Selling your units back to the scheme to withdraw money. The amount is the number of units multiplied by the applicable-day NAV, less any exit load. Gains are taxable: for residents the tax is paid by you rather than deducted at redemption, while for NRIs tax is deducted at source.
Riskometer
ગુજરાતી: રિસ્કોમીટર (જોખમ માપક) हिन्दी: रिस्कोमीटर (जोखिम मापक)
The standard six-level graphic every scheme must display, indicating its risk from Low to Very High.
Scheme document (SID / KIM)
ગુજરાતી: યોજના દસ્તાવેજ (SID / KIM) हिन्दी: योजना दस्तावेज़ (SID / KIM)
The official documents setting out a scheme’s objective, strategy, costs and risks; the primary source to read before investing. How to read a scheme document shows you where to look.
SIP (Systematic Investment Plan)
ગુજરાતી: SIP (વ્યવસ્થિત રોકાણ યોજના) हिन्दी: SIP (व्यवस्थित निवेश योजना)
Investing a fixed amount at regular intervals, usually monthly, instead of all at once, so your purchase price averages across many dates. SIP or lump sum explains the trade-off.
STP (Systematic Transfer Plan)
ગુજરાતી: STP (વ્યવસ્થિત ટ્રાન્સફર યોજના) हिन्दी: STP (व्यवस्थित ट्रांसफ़र योजना)
Moving a fixed amount from one scheme to another at regular intervals. The STP calculator illustrates it.
SWP (Systematic Withdrawal Plan)
ગુજરાતી: SWP (વ્યવસ્થિત ઉપાડ યોજના) हिन्दी: SWP (व्यवस्थित निकासी योजना)
Withdrawing a fixed amount from a scheme at regular intervals while the rest stays invested. The SWP calculator illustrates it.
Units
ગુજરાતી: યુનિટ (ફંડમાં તમારો હિસ્સો) हिन्दी: यूनिट (फंड में आपका हिस्सा)
The shares of a scheme’s portfolio that your money buys, priced at the NAV; owning more units means a larger share of the same portfolio.
These are definitions, not advice
This page explains what terms mean. It does not name a scheme, rank anything or tell you what to buy. H2 Investment is an AMFI-registered mutual fund distributor (ARN-200996), not a SEBI-registered investment adviser. Tax treatment depends on your own circumstances and the rules change — confirm your position with a qualified tax adviser.