What does the CAGR tell you? Compound Annual Growth Rate (CAGR) is the rate of return at which the investment grows every year from beginning balance to ending balance, assuming the profits are reinvested each year. CAGR tells the rate...

What is the difference between balanced and hybrid funds? Balanced funds or Balanced Hybrid Funds are a type of hybrid fund. They are open-ended balanced schemes investing in both equity and debt instruments. As per SEBI regulations, these funds have...

What does assets under management mean? Assets Under Management (AUM) is the market value of investments managed by a firm or person on behalf of clients. AUM is used to indicate the size of investments managed by a fund, portfolio...

What is an asset management company, and what are its functions? Asset Management Company (AMC) is a company that pools investments from various individuals and institutional investors. The AMC manages the money by investing in capital assets. Capital assets like...

What’s the difference between annual rate and annual yield? Annual yield is the earnings from an investment over a specified period of time. The yield includes investor's earnings, such as dividends and interest received for holding an investment. In other...

What is a good average annual return? The average annual return (ARR) is the money earned from an investment during the investment tenure. A good average annual return should be higher than the interest rate one will earn by depositing...

What is the difference between available funds and account balance? The account balance is the total amount of money available in the account. It includes all the pending transactions and/or other amounts that are yet to clear, for example, cheques....

Should I buy a dividend ETF? Dividend ETFs are a type of Exchange Traded Funds that invest in stocks with a potential to offer a high dividend. These are passively managed funds and track a particular index. An individual doesn't...