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Maharashtra State BoardSSC (English Medium) 10th Standard

Mutual Funds and Systematic Investment Plan

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Maharashtra State Board: Class 10

Definition: Mutual Fund (MF)

A Mutual Fund is a professionally managed investment scheme in which money from many investors is pooled together and invested in shares, bonds, debentures or other securities by an Asset Management Company (AMC).

Maharashtra State Board: Class 10

Formula: Net Asset Value (NAV)

The market value of one unit of a mutual fund is called Net Asset Value (NAV).

\[\mathrm{NAV}=\frac{\text{Total fund value}}{\text{Total number of units}}\]

Maharashtra State Board: Class 10

Definition: Systematic Investment Plan (SIP)

A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals (monthly/quarterly) in mutual funds.

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