A mutual fund pools many people's money. A fund manager and an AMC run it, SEBI regulates it, and you own units whose value moves with the investments.
NAV is the price per unit, updated daily. Units × NAV = your value. A low or high NAV doesn't mean better or worse.
Equity funds own companies, debt funds lend, hybrid funds mix, index funds copy a list. Match fund type to your goal, time and comfort with risk.
Costs matter (expense ratio, direct vs regular, exit load). The risk-o-meter shows risk, and a fund is not a bank deposit.
A fact sheet shows the objective, type, risk level, holdings, costs and past results. Use a checklist and start small.
What you'll learn
Lesson 11.1
Many People, One Basket
Farida and nine friends each have ₹1,000. Alone, it's too little to buy much. Together, it's a basket worth ₹10,000. What could they do with it?
You'll learn: What a mutual fund is.
Pooling: A mutual fund pools money from many people.
Who Runs It? A fund manager and an AMC run the fund. SEBI regulates.
Units: Units are slices of the pool. Their value moves with the investments.
Lesson 11.2
The Price of a Unit
Every evening, each unit of a fund gets a new price. How is it set?
You'll learn: How NAV and units work.
What Is NAV? NAV = value of the fund's investments ÷ number of units.
Buying Units: Units × NAV = the value of your investment.
NAV Is Not a Price Tag for Quality: Compare growth and cost, not the size of NAV.
Lesson 11.3
Types of Funds
Three friends open three baskets: one owns pieces of companies, one lends money, one mixes both. Which basket is calmer?
You'll learn: The main types of mutual funds.
Equity and Debt: Equity = owning companies, more ups and downs. Debt = lending, usually calmer.
Hybrid and Index: Hybrid = mix. Index = copies a list, usually lower cost.
Matching Funds to Goals: Match funds to your goal, time and comfort with risk.
Lesson 11.4
Costs and Rules
Two funds earn the same 10%. One leaves Sana with ₹1,090, the other with ₹1,060. Where did ₹30 go?
You'll learn: The costs and rules of mutual funds.
Expense Ratio: The expense ratio is the yearly cost of running a fund.
Direct vs Regular: Compare direct vs regular and check exit loads.
Risk Labels: Check the risk-o-meter. A fund is not a deposit.
Lesson 11.5
Reading a Fact Sheet
Sana opens a fund's fact sheet: pages of numbers. Where should she look first?
You'll learn: How to read a fund's fact sheet.
The Basics: Read the objective, type, risk level and holdings.
Costs and Past Results: Compare costs and results with the benchmark and similar funds, but past results aren't a promise.
Is It for Me? Use a checklist, start small, review.
Final challenge
Fund Smart
Farida, Dev and Sana explored mutual funds. 10 quick questions!
Try a question
From lesson 11.1: Many People, One Basket
A mutual fund is...
A single person's wallet
A pool of money from many investors
Show the answer
A pool of money from many investors. It's a shared pool.
Learn it the Yukti way
Every lesson is a short story told in scenes, with a quick question after each idea and a review at the end. Wrong answers come with a clear explanation, and Practice brings them back until they stick. Examples use Indian rupees and Indian rules, and show in your own currency in the app.
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