Mutual Funds Glossary, Mutual Fund Glossary, mutual funds dictionary, mutual fund dictionary, mutual fund definition, glossary of mutual fund terms, glossary of mutual funds, mutual fund terms

Equity Linked Savings Scheme
A special product offered by mutual funds. The Equity Linked Savings Schemes (ELSS) give their investors the option of saving tax while participating in the growth of the capital market. An investment of up to 1,00,000 under ELSS qualifies under Section 80C of the Income Tax Act, 1961. As per the ELSS guidelines issued by the Central government, mutual funds have to ensure that at least 80 percent of the funds are invested in equities and equity-related instruments. Investors can sell back their units to the mutual fund at the NAV-based repurchase price after the lock-in-period of three years. The long term capital gains on sale of units are not taxable in the hands of the investor.

Equity Schemes
Schemes where more than 65% of the investments are done in equity and equity related securities of various companies. These funds tend to provide maximum returns over a long-term horizon. However, the returns from these funds are directly linked to the stock market and are volatile as compared to those from debt funds.

Ex-dividend Date
In respect of any distribution of dividend, the date from which the holders are not entitled to the dividend. The NAV is accordingly reduced to the extent of the dividend declared.

Exit Load
The fee charged at the time of redemption. It amounts to the difference between the NAV of the units of a scheme and the price at which existing units are redeemed. The fee has to fall within the overall limit laid down by SEBI.

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