,"For investors seeking to diversify their portfolios, mutual funds are a ... The term 'no-load' has a specific meaning when used in the context of..." Mutual funds are a popular choice for investors looking to diversify their portfolios. But, in order to make the most of your investments, it’s important to understand the basics of how mutual funds work and the key terms associated with them. In this article, we’ll look at three key concepts: XIRR, IDCW and no-load.
XIRR stands for “excess internal rate of return.” It’s a measure of the return you can expect from an investment over a period of time, taking into account any taxes or other costs associated with the investment. XIRR is an important concept to understand when investing in mutual funds, as it can help you determine the optimal investment strategy.
IDCW stands for “initial dividend cumulative weight” and is a measure of the total return of an investment over a period of time. It takes into account any dividend payments, as well as any taxes or fees associated with the investment. IDCW is an important concept to understand when investing in mutual funds, as it can help you determine the optimal investment strategy.