SIP & Mutual Fund Glossary

Systematic Investment Plan — a method of investing a fixed amount in mutual funds at regular intervals, typically monthly.

Compound Annual Growth Rate — the annualized rate at which an investment has grown over a specified time period, assuming growth was compounded annually.

Net Asset Value — the per-unit market value of a mutual fund's assets minus its liabilities, calculated at the end of each trading day.

Association of Mutual Funds in India — the self-regulatory organization of the Indian mutual fund industry, responsible for standardization and investor education.

Equity Linked Savings Scheme — a tax-saving mutual fund that qualifies for ₹1.5 lakh deduction under Section 80C, with a mandatory 3-year lock-in period.

Systematic Withdrawal Plan — the reverse of SIP, where you redeem a fixed amount from your mutual fund corpus at regular intervals.

A one-time investment of the entire amount in a mutual fund, as opposed to spreading investments over time through SIP.

A variant of SIP where the monthly investment amount increases by a fixed percentage each year, aligning investment growth with income growth.