100 FAQ's on Basic Finance
Module Units
- 1. 100 Most Asked Finance Questions
- 2. When and why should you start saving?
- 3. Have you ever thought about how much you should save every month?
- 4. How is investment different from Savings?
- 5. When to start investing? What are the steps in the investment process?
- 6. What care should you take while investing?
- 7. What are various options available for investment?
- 8. What is meant by Interest?
- 9. How Does Inflation Affect Interest Rates?
- 10. What is Simple Interest?
- 11. What is Compound Interest?
- 12. Why 0% is not really 0% in EMI schemes?
- 13. What is Return?
- 14. What is the difference between return and interest?
- 15. What are the types of Asset Classes?
- 16. What is a PAN Card and its importance?
- 17. What are the types of bank accounts in India?
- 18. How to select a suitable savings bank account?
- 19. What is a Credit Rating?
- 20. What is a MAB (monthly average balance) and how does it affect you?
- 21. What is the maximum EMI I can service?
- 22. What is a credit card and how to use it?
- 23. What is credit score (CIBIL score) and importance of credit history?
- 24. Pay off credit card debt or Invest?
- 25. Meaning & usage of NEFT / RTGS / IMPS
- 26. What is a Bond?
- 27. What is a Derivative?
- 28. What is a Mutual Fund?
- 29. Public Provident Fund (PPF)
- 30. Employees Provident Fund (EPF)
- 31. National Savings Certificate (NSC)
- 32. Post Office Monthly Income Scheme (PO MIS)
- 33. Senior Citizen Saving Scheme (SCSS)
- 34. Kisan Vikas Patra (KVP)
- 35. Company Fixed Deposits (FDs)
- 36. RBI Savings Bonds
- 37. Capital Gain Bonds or 54 EC Bonds
- 38. Sukanya Samriddhi Scheme (SSS)
- 39. Non-convertible Debentures (NCDs)
- 40. Coupon Bearing bonds
- 41. Tax-Free Bonds
- 42. New Pension Scheme (NPS)
- 43. Atal Pension Yojana (APY)
- 44. What is meant by a Stock Exchange?
- 45. What is an Index?
- 46. What is a Depository?
- 47. What is Dematerialization (DEMAT)?
- 48. What is an ASBA facility?
- 49. What is meant by Securities?
- 50. Rights Issue Shares
- 51. Bull and Bear markets
- 52. Stock Split & Bonus Shares
- 53. What is the Auction Process?
- 54. What is Buyback of shares?
- 55. What are the Key Dividend Dates?
- 56. Where to find the stocks related information?
- 57. Factors Affecting Share Prices in the Stock Market
- 58. Dividend & Dividend yield
- 59. What is a Clearing Corporation?
- 60. What is Rolling Settlement?
- 61. How does one decide to buy and sell any equity share?
- 62. What are the various types of the risks once I start trading?
- 63. What is an Overvalued Stock or an Undervalued Stock?
- 64. Explain the terms -selling short and Margin Trading
- 65. What are Circuit filters & trading bands
- 66. What is Insider Trading?
- 67. What are advances and declines?
- 68. How much equity should I have? OR What should your asset allocation be?
- 69. What are the good parameters while selecting a good blue-chip company stock?
- 70. How to analyse whether a new IPO will succeed or not while going forward?
- 71. How to calculate gains on sale of equity funds?
- 72. What does ownership of a company give you?
- 73. How to obtain Annual Report / Quarterly report?
- 74. What are Company Earnings and its importance for an investor?
- 75. What is Financial Planning?
- 76. How do you budget? Is it necessary to have a budget?
- 77. How much emergency fund should I hold?
- 78. How much money should I save towards retirement?
- 79. How to fix timelines for your goals and align them with the proper investment vehicles?
- 80. How many years will it take to double your investment?
- 81. What should you choose - Fixed Deposit OR investment in Stocks?
- 82. Debt fund vs fixed deposit?
- 83. Should I rent or buy a house?
- 84. Can I afford to buy a house?
- 85. What are the major points to consider while taking home loan?
- 86. How many mutual funds should an investor have?
- 87. What should be your ideal mutual fund portfolio?
- 88. What is the difference between dividend and growth options while selecting a mutual fund?
- 89. Which is the best mode to select in mutual funds - monthly, half-yearly or annually?
- 90. How to choose the best investment instrument for your goals?
- 91. What are the charges that I should keep in mind while investing in mutual funds?
- 92. How does the taxation on redemption of SIPs work?
- 93. How are your dividends taxed across shares and mutual funds?
- 94. What are the must know things about family finance?
- 95. What is a Nominee and why is it important to have a nominee?
- 96. What happens to your policy if you discontinue your premiums?
- 97. Explain what is Deposit Insurance?
- 98. Family floater health plan or individual policy – which is a better option?
- 99. How much life insurance should I have?
- 100. Importance of life insurance
- 101. What is health insurance?
What are the charges that I should keep in mind while investing in mutual funds?
Some of the key mutual fund investment charges are:
Entry Load: It is charged when you enter into a mutual fund scheme for the first time.
Exit Load: It is charged when you redeem your mutual fund units.
Expense ratio: It is charged annually by a fund house for the management of a mutual fund scheme.
Transaction Charges: You'll only face this charge once when you invest. For investments of Rs. 10,000 or more, there might be a transaction fee of Rs. 100 to Rs. 150. This fee also applies to SIP investments over Rs. 10,000. Investments under Rs. 10,000 don't have a transaction fee.
Why do fund houses charge investors?
Mutual funds are run by experts called fund managers who work for these houses. They're supported by experts in capital markets and finance. Managing big investments requires loads of experience, expertise, and passion. So, fund houses have mutual fund charges for their services as mutual fund fees, which are approved by SEBI.
This fee covers various expenses like advisory, operations, management, legal stuff, and more. All these expenses together make up the total expense ratio (TER), which is the fee a mutual fund scheme charges to manage your money. It's usually a percentage of your investment, and it's deducted from the NAV (Net Asset Value), which is what you see as your investment value.
SEBI says that as the fund's assets grow, the TER should come down, and vice ver
How is the Total Expense Ratio Calculated?
To find the Total Expense Ratio (TER) of a mutual fund, you use this formula:
TER = (Total expenses during a period ÷ Total net assets of the fund) x 100.
Always look for all these charges before selecting any mutual fund.
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