Some need to know terms in Mutual funds

Lots of people these days are investing stock quotes in mutual funds. However, not all of them meet all the required terms of mutual funds. If you too are one of those people, this article is for you then. Today in this article we will get to know some of the most common words used in the mutual fund’s investment sector.

AMC

The full form of AMC is Asset Management Company. These companies take the money from the investors and invest it in some other places. After the profit, they return the profit to the investors after cutting their small fee.

AUM

The full form of AUM is Asset under management. It is the total amount of money that the investors have given to the AMU to invest in some other projects. These sums can be even the thousand crores in some cases when the company is big enough to handle it all.

Funds

These are nothing but a special type of investment schemes set with some very different ideas for people to invest money for future growth.

Stock Market

Portfolio

This is the total view of the investment done by any funds in many different companies. For example, suppose one fund has invested it’s 70% of the total assets in 50 different companies and the remaining 30 percent he has kept with itself. Then the portfolio shows all the things in it like all investments and the remaining sum.

Expense ratio

When you deposit some money in some funds. The funds take some fees to invest that money in different funds. That fee taken by them is known as the expenses ratio. Before you invest your money, you should also check what is the expense ratio of that particular Fund.

Open-end funds

These are the special type of funds. The listing of these funds is not listed on the stock exchange. Hence, you got some more flexibility to sell your funds at any time and at any price. In Indian, mainly this type of fund is used.

Closed-end funds

This is a type of funds where the records are listed even on the stock exchange. Hence, you can not buy or sell the stock directly from the funds but to buy or sell it you need to take the help of any stock exchange.

Above we got to know some of the very common words used in mutual fund investment. Maybe you still need to know some other words for a better understanding of mutual funds and it’s working. For all such things, you may refer to our other article on similar topics. If you want to get more information, you can check at https://www.webullapp.com/.