Corpus Meaning In Mutual Fund – Meaning, Importance & More!
How many times has investment jargon put you off investing? To begin, these are relatively simple terms that may appear difficult to understand. This blog will provide a brief overview of Corpus as well as what it means in terms of funds and you as an investor. So keep reading to find out!
Understanding Mutual Fund Corpus Meaning
Simply put, the corpus is the total amount of money invested in a particular scheme by all investors.
As an example,
If a mutual fund has 120 units and the price of each unit is 12, the total corpus of the mutual fund is 1,200 rupees. When you invest in a mutual fund, the total amount invested, whether in a lump sum or in multiple instalments or SIPs, is referred to as your Corpus.
What Is the Importance of Corpus?
A corpus can be viewed from two perspectives:
One is from the perspective of a fund. The fund's corpus displays the total size of the investment pool so far. Larger funds typically have a much more diverse portfolio that targets all of the major sectors that comprise an index.
The other point of view is that of an investor. Most of these funds will meet their growth objectives over time. But, as an investor, what does corpus mean in mutual funds mean to you? Read more on: Corpus Meaning In Mutual Fund
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