ICICI Prudential Nifty SDL Sep 2026 Index Fund Direct Plan Annual IDCW Payout

Understanding Scheme Terms

Net Asset Value (NAV)

The price at which you can buy one unit of a mutual fund is called the NAV. The entire market value of the assets held by the mutual fund (minus liabilities and losses) is divided into these units. While the NAV is important, you should also consider factors like historical performance, potential for returns and expense ratio while making an investment.

Assests Under Mangement (AUM)

AUM is the total market value of the assets held and managed by the mutual fund. It is an important factor to consider while investing. While a higher AUM can indicate more trust in the fund, remember that AUM is always relative - it has no direct bearing on the performance of a fund. Understand a fund’s relative AUM by doing peer comparisons with similar funds.

Exit Load

Some mutual funds may charge a fee if you withdraw your investment before a specific time period. This fee is called the Exit Load, and is usually charged to discourage premature withdrawals. Exit Load is calculated as a percentage of the NAV at the time of withdrawal. It is a vital factor to consider while planning your investments. Study exit loads carefully and time your withdrawals to maximise savings.

Expense Ratio

Mutual funds charge an annual fee for managing your funds. This fee is shown as the Expense Ratio. It is calculated by dividing the total expenses incurred by the total value of the assets held by the mutual fund. The expenses include all the costs of running the mutual fund. The Expense Ratio is also a vital factor to consider while investing, as it can have a significant impact on your net profits.