Learn
Short, plain-language guides on the terms and numbers you meet when you save and invest in India.
Basics
- What is a mutual fund? A simple guide for Indian investorsWhat a mutual fund is, how it works, who runs it, and the main types of schemes in India, explained in plain language.
- What is NAV in mutual funds? How it is calculatedNAV is the price of one mutual fund unit. Learn how NAV is calculated, why a low NAV does not mean a cheap fund, and how NAV relates to returns.
- Direct vs Regular mutual funds: what is the difference?Direct and Regular plans invest in the same portfolio but differ in cost. See how the commission changes your long-term returns, with a worked example.
- Growth vs IDCW (dividend) option in mutual fundsWhat IDCW means, how it differs from the Growth option, how NAV and tax are affected, and why IDCW returns look lower on NAV charts.
- Expense ratio and exit load in mutual funds explainedWhat the expense ratio (TER) and exit load are, who sets them, how they affect returns, and where to find them for your fund.
- What is a SIP? How a systematic investment plan worksA SIP invests a fixed amount in a mutual fund every month. Learn how it works, what rupee-cost averaging is, and what a SIP can and cannot do.
- SIP vs lumpsum: which is better for mutual funds?Compare SIP and lumpsum investing: how each works, why they cannot be compared rupee for rupee, and how to choose based on your situation.
- How to use the mutual fund screener: a step-by-step guideLearn to filter funds by category, plan and option, sort by returns and risk, read the columns, compare funds and share your results with a link.
Returns and risk
- CAGR vs XIRR vs absolute return: which one to use?Absolute return, CAGR and XIRR measure mutual fund returns in different ways. Learn what each means, with worked examples, and when to use which.
- Rolling returns explained: a better way to judge mutual fundsRolling returns show how a fund performed across every possible start date, not just one lucky or unlucky period. Learn how to read them.
- Mutual fund risk measures: volatility, Sharpe, Sortino, drawdownUnderstand standard deviation (volatility), Sharpe ratio, Sortino ratio and maximum drawdown in plain language, and how to use them to compare funds.
Fund types
- Mutual fund categories in India: large, mid, small and flexi capSEBI sorts mutual funds into defined categories. Learn what large, mid, small, flexi and multi cap, hybrid and debt categories mean, and why to compare within one.
- ELSS tax saving mutual funds: how they workELSS funds are equity funds with a 3-year lock-in that qualify for a tax deduction under the old tax regime. Learn the rules, the risks and how a SIP in ELSS works.
- Index funds vs ETFs vs active funds: differences explainedIndex funds and ETFs follow a market index at low cost; active funds try to beat it. Learn how each works, how they differ, and what tracking error means.
- Debt mutual funds explained: types, risks and returnsDebt funds invest in bonds and money-market instruments. Learn the main types (liquid, short duration, corporate bond, gilt), the risks, and how they are taxed.
Tax
Government schemes
- PPF explained: interest, limits, withdrawal and taxHow the Public Provident Fund works: yearly limit, 15-year term, how interest is calculated, why the 5th of the month matters, withdrawals and tax.
- Sukanya Samriddhi Yojana (SSY) explainedHow Sukanya Samriddhi Yojana works for a girl child: who can open it, how long to deposit, when it matures, how interest is calculated and how it is taxed.
- Post Office savings schemes explained: MIS, RD, TD, SCSS, NSC, KVPA plain guide to Post Office savings schemes: how MIS, RD, time deposits, SCSS, NSC and KVP pay interest, who they suit and how they are taxed.
- Government savings schemes compared: PPF, SSY, NSC, KVP, SCSS, MISCompare PPF, Sukanya Samriddhi, NSC, KVP, SCSS, Post Office MIS, RD and time deposits by purpose, lock-in, interest payout and tax, to see which fits which goal.
- PPF vs mutual funds: safety, returns, lock-in and taxPPF and mutual funds do different jobs. Compare risk, expected returns, lock-in, liquidity and tax, and see how to think about splitting money between them.
Planning
- Rent vs buy a house in India: how to decideHow to compare renting with buying a home in India: rental yield, EMI, stamp duty, price growth, investing the difference and the numbers that decide it.
- EV vs petrol car in India: running cost, payback and what to checkHow to compare an electric car with a petrol, diesel or CNG car in India: cost per km, charging cost, the higher price, payback and what is often left out.
- Buying gold and silver: jewellery, coins, funds and what each costsHow the cost of gold and silver differs by form in India: jewellery with making charges and GST, coins and bars, gold funds, and what you get back when you sell.
- How an EMI works: home, car and personal loans, flat vs reducing rateHow loan EMIs are calculated in India, why early EMIs are mostly interest, what a flat rate really costs, and how prepayment and tenure change the total interest.
- Fixed deposit returns after tax and inflation: what you really earnA fixed deposit's quoted rate is not your return. See how compounding, tax on the interest and inflation change what you actually earn, with a worked example.