Mutual Fund Basics
Mutual Fund Terms Explained
A glossary of NAV, AUM, exit load, SIP, SWP and more.
Updated 16 October 2026 · SEBI rules as of 2026
Documents
SID, SAI, KIM, factsheet
Mutual Fund BasicsOverview
Understanding common terms makes scheme documents and statements easy to read.
| Particular | Details |
|---|---|
| Documents | SID, SAI, KIM, factsheet |
| Statement | Consolidated Account Statement (CAS) |
Glossary
| Term | Meaning |
|---|---|
| Units | Your share of the scheme |
| NAV | Per-unit value |
| AUM | Total assets managed |
| Expense ratio / TER | Annual cost as % of assets |
| Entry load | Abolished by SEBI in 2009 |
| Exit load | Charge on early redemption |
| NFO | New fund offer |
| SID / KIM | Scheme Information Document / Key Information Memorandum |
| SIP / STP / SWP | Systematic investment / transfer / withdrawal plan |
| IDCW | Income distribution cum capital withdrawal (formerly dividend) |
| Lock-in | Period you cannot redeem |
| Benchmark (TRI) | Index used to judge performance |
| Tracking error | Deviation of index fund from index |
| Portfolio turnover | How often holdings change |
| Folio | Your account number with the AMC |
| CAS | Consolidated statement across AMCs |
| Side pocket | Segregated portfolio after a credit event |
| Switch | Move from one scheme to another in the same AMC |
| Cut-off time | Deadline for same-day NAV |
Frequently asked questions
Is there an entry load?
No — SEBI abolished entry loads in 2009.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.