Picture this –
How many times has investment jargon discouraged you from investing? To start with these are relatively simple terms that may seem complicated to hear. This blog will specifically give a brief understanding of Corpus and also what it means when it comes to funds and to you as an investor. So read ahead to find out!
Understanding Corpus Meaning In Mutual Fund
In simple terms, the corpus is the total money invested in a particular scheme by all the investors.
For example –
If there are 120 units in a mutual fund and the price of each unit is ₹12, the total corpus of the mutual fund is ₹1,200 rupees.
Now, when you are investing in a mutual fund, the total investment, whether done through lump sum or through multiple installments or SIPs, is referred to as your Corpus.
Why Is Corpus Important?
You can view a corpus from two perspectives –
One is from the point-of-view as a fund. The corpus of the fund shows you the actual size of the investment pool so far. Larger funds tend to have a much more diverse portfolio, targeting all major sectors that constitute an index.
The other perspective is that of an investor. Over time, most of these funds will achieve their growth target. But what is corpus meaning in mutual fund mean to you as an investor?
It could be a house, a trip abroad, or retirement. It depends on your investment goal, the timeline, and the cost of the goal itself.
So when you start investing in the fund, whether it’s a lump sum or through SIP, you must understand that it is for a long-term goal you have in mind. That is a personalized meaning of a corpus.
Do you want to learn more about mutual funds and how to go about investing in them?
Then we have the right course of action for you. (pun intended)
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