Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
An Indian mutual fund scheme that invests into an overseas fund rather than buying foreign securities directly.
No remittance and no forex paperwork, which is the appeal. Expenses are higher, and the industry-wide overseas investment limit has been hit before — schemes then stop accepting fresh money.
A scheme that invests in units of other mutual fund schemes rather than in securities directly.
It holds units, not shares, so it cannot meet the ordinary equity-oriented test; the separate route for it needs ninety per cent into an exchange-traded scheme that itself holds ninety per cent in domestic listed equity. A feeder into an ordinary index fund gives you identical exposure in a different tax bucket, and charges two layers of expense to do it.