How mutual funds work, in plain words
Short guides to the ideas behind every figure on this site, and a glossary of its terms. Each is written for this site and links the pages it was checked against, from SEBI, AMFI and other reputable sources.
This explains how things work. It is not advice about what to buy, sell or hold.
Basics
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New to mutual funds? Start here
What a fund is, its three main kinds, two ways to put money in, and what looking back can and cannot say.
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What a mutual fund is
Many people's money pooled and invested together, owned in units and priced every business day.
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Equity, debt and hybrid
What shares, bonds and a mix of the two are, and what moves the price of each.
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How funds are grouped
SEBI's categories, what each one commits a fund to hold, and why funds are compared within a category.
Costs
Risk and return
Your portfolio
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SIP and lump sum
Two ways money goes into a fund, all at once or a fixed amount at intervals, and how each is measured.
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How mutual fund gains are taxed
The ideas behind the tax on fund gains and payouts. Rates change with each Budget, so none are printed here.
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Your portfolio's look-through
Why two funds can own the same companies, and how this site works out what a set of funds owns between them.