India4u - Business

page 3

	Equity fund This is a scheme that invests only in equity. Enquity-linked savings schemes The major portion of investment in ELSS is in equity. The dividends in this scheme are tax-free. Entry load The commission charged at the time of buying the fund. It is also called front-end load. Exit load The commission or charge paid when an investor exits from a mutual fund. They are basically imposed to discourage withdrawals. Exchange privilege A feature offered by some mutual fund in which an investor is able to switch from one scheme to another within the fund family without having to pay any charges. Same as Switching. Expense ratio A mutual fund’s operating expenses, expressed as a percentage of its average net assets. Mutual funds with lower expense ratios are able to distribute a higher percentage of their total returns to their shareholders. Top