About Mutual Funds
What is a Systematic Withdrawal Plan or SWP?
A Systematic Withdrawal Plan (SWP) is an intelligent way to withdraw money at regular intervals from large investments while you allow them to continue to grow with the market. With a SWP, you can predetermine an amount to be withdrawn monthly with ...
What is a Systematic Transfer Plan or STP?
A Systematic Transfer Plan (or STP) allows you to move your investments from one fund to another fund from the same AMC just like a SIP investment, with a set date, amount and number of installments. This method of investing is used very often to ...
My Bank IFSC code was not recognised by the application. Please help.
There are a set of banks that our partner BSE Star approves for Netbanking and Mandate based payments. We have added the same list to the application, and will try to match your bank's IFSC code against that list. If your bank is missing from the ...
What is indexation?
Indexation is the benefit provided on long-term capital gains in various assets, including debt mutual funds. It allows investors to increase their ‘cost of acquisition’, while calculating capital gains and, thus, reduces taxable capital ...
What is the difference between multicap and flexicap funds?
As per the Securities and Exchange Board of India (SEBI), multicap funds are a class of equity funds that are required to invest at least 75% of their assets in equities. Additionally, they are required to allocate at least 25% towards each of ...
Does Glide Invest support ETF investments?
No, we do not support ETF investments, since we need to tie up with brokers for it. ETFs are currently not efficient as investors today overpay/undersell their investments by 1% due to poor exchange liquidity. In light of these inefficiencies, Index ...
Why are my switch transaction not reflecting?
Switch instructions are processed on separate dates by the Mutual Fund companies. Once a Switch order is placed, a Switch-Out happens first, and once the funds are added into he funds bank account, the Switch-In is executed by the AMC. On an ...
How can I switch my investments from one fund to another?
When you move your investments from one mutual fund to another fund within the same AMC, it is termed as a Switch. Switching is only allowed within funds of the same AMC. In a switch transaction, the AMC first sells your units from the original fund ...
What are some of the risk parameters associated with Mutual Funds?
Standard Deviation: is a measure of evaluating the risk caused by the volatility. It tells how much a fund’s performance deviates over a time-frame. Higher the standard deviation, the higher the risk taken by the fund. Risk-adjusted return: is the ...
What are Absolute Returns, CAGR and XIRR?
Absolute Returns (or Total Returns): it is the gain or loss you’ve made on your investment over any given period of time. Investors should not be looking at the absolute returns when investing in Mutual funds. Absolute Returns = (Final Value – ...
How does legal claimant access Mutual Fund investments upon death of an investor?
In case of death of an investor, their nominee or legal heir can claim the proceeds by process of transmission. Here are some things to keep in mind. Case 1: If there is a nominee registered The basic process is to submit the following documents: ...
What is the difference between investing via Netbanking vs Autopay?
Want to invest today? Use NETBANKING and/or UPI. Use Netbanking and/or UPI when want to make the purchase today itself. We will facilitate the transfer of funds right away from your bank account to the Mutual Fund company. Do note that cut-off times ...
What stamp duty charges are applicable on my Mutual Fund investments?
Stamp Duty has been levied on all Mutual Fund Schemes from 1st July 2020. It is akin to entry load and will be implied in the following scenarios: Lump-sum Investment in Equity and Debt Fund Schemes Systematic Investment Plans (SIPs) Systematic ...
How can I find out if I have invested in a regular plan or direct plan?
Investments made through a financial intermediary like a bank or a broker, are usually regular plans. If you have invested through a financial planner and he/she has advised you on what to buy, done all the paperwork himself/herself and has collected ...
How does my broker or agent make money when I invest in Regular plans?
Financial agents offer you advice on mutual funds for free. But there is no free lunch. They get paid from the expense ratio charged to you. A regular plan expense ratio will contain the commission to be paid to the agents by the AMC and the ...
What are the benefits of investing in a SIP?
Some of the benefits of investing in SIPs are as follows: Become a disciplined investor : A SIP investment would make you more disciplined in matters of managing your finances. With the option of automated payments, it means you don’t have to ...
What are regular plans and direct plans?
All mutual fund schemes offer two plans - Direct and Regular. In a Direct Plan, an investor has to invest directly with the AMC or with an online robo-advisory platform, with no distributor to facilitate the transaction and no investment advice. ...
What are entry and exit loads?
Entry Load is a charge paid by the investor at the time of the initial stage of investment purchase to the mutual fund company. The entry load is usually deducted from the investment amount, reducing the quantum of investment. In India, entry load is ...
What are expense ratio and TER?
Expense ratio is defined as per unit cost spent for managing funds. Expenses generally include management fees and operating expenses. It is the total percentage of fund assets used for administrative, management, advertising (12b-1), and all other ...
Should I pay attention to fund ratings?
Ratings from independent sources is one of the most convenient ways to compare different mutual funds. But they rely heavily on 3-5 years of past performance which is not a good indicator of future performance. In addition, independent ratings do not ...
What are beta and alpha?
Beta represents market returns or benchmark returns. These index funds are built to deliver beta (market) returns. Alpha represents the return in excess of beta returns. For example if the market/benchmark delivers 8% whereas a fund manager delivers ...