Investing: Zero to Hero

🧺 Chapter 3: Mutual Funds ​

🎯 In this chapter

Units, NAV, fund types, costs and factsheets.

Units in this chapter ​

  1. How a Mutual Fund Works - Learn how pooling, units, NAV and AUM work, and the SEBI safeguards behind every mutual fund scheme.
  2. Types of Funds - Understand equity, debt, hybrid, liquid and ELSS funds, and how SEBI categorises mutual fund schemes.
  3. Fund Costs - Understand expense ratio, direct vs regular plans, exit load, and how small cost differences add up over 20 years.
  4. Index Funds, ETFs, Active vs Passive - Understand index funds, ETFs, tracking error, and the active vs passive investing debate, including Bogle and Malkiel's arguments.
  5. Reading a Factsheet - Learn how to read a mutual fund factsheet, including benchmark, riskometer, portfolio and rolling returns, and what to ignore.

📖 How to read

Go in order. Every new term is explained the first time it appears, and each unit ends with a keywords table.