Mutual fund jargon makes simple things sound hard. Scroll through each idea; the chart beside it uses real prices.
02 of 07
Direct vs Regular
two ways to buy the same fund
Regular plans are sold through agents, who earn a commission every year you stay invested. Direct plans are bought straight from the fund house, without one. The shares inside are identical; only the yearly fee differs.
In the data:HDFC Large Cap launched both plans in Jan 2013. Today: Direct ₹1172.67, Regular ₹1076.48.
HDFC Large Cap: Direct (blue) and Regular (orange) NAV, slowly drifting apart.
03 of 07
Index fund
the cheap, boring option
A fund with no star manager. It simply buys the 50 biggest companies in the Nifty 50, in the same proportions, so its fees are tiny. It's the yardstick every other fund on this site is measured against.
In the data:UTI Nifty 50 Index (Direct): 11.3% a year since Jan 2013.
50 companies, held in fixed proportions. No stock picking.
04 of 07
SIP
Systematic Investment Plan
Investing a fixed amount every month instead of a lump sum. You buy more units when prices are low and fewer when they're high, and you never have to guess the right moment.
In the data:₹5,000 a month into the Nifty 50 index fund since Jan 2016: ₹6.5 lakh put in, ₹11.7 lakh today.
What the SIP was worth (green) against the money put in (dashed).
05 of 07
CAGR
average yearly growth
If your money had grown at one steady rate every year, what would that rate be? ₹1 lakh becoming ₹2 lakh in 6 years is about 12% a year. It smooths away the bumps, which is why we also show the falls.
In the data:SBI Small Cap (Direct): ₹10 lakh in Nov 2013 became ₹1.57 crore after 12.9 years. As a steady yearly rate, that's 23.8%.
The real, bumpy path (blue) and the steady 11.2% a year that ends in the same place (dashed).
06 of 07
Rolling returns
what a typical investor got
Instead of measuring from one convenient start date, measure from every possible one. Fund adverts quote their best period; rolling returns show the whole range, from unlucky to lucky.
In the data:Nifty 50 index fund, last 5 years: 5.8% a year. Typical 5-year stretch since 2013: 13.3%.
Every 5-year period, grouped by its yearly return. Orange holds the most recent one.
07 of 07
Drawdown
the worst fall from a high
How far a fund dropped from its highest point before recovering. It answers the question returns can't: how scary does this get, and could you sit through it without selling?
In the data:Between its January 2020 high and the COVID low in March, the Nifty 50 index fund fell 38.4%.
Distance below the previous high, every week. Zero means a new high.
NAV
NAV of UTI Nifty 50 Index, every week since Jan 2013.