A to Z glossary for Indian mutual funds held abroad
Terms from Indian fund papers and from the tax forms of the USA, Canada, the UK and Europe, each in a plain sentence, in alphabetical order.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on November 5, 2026.
Fund papers, tax forms and bank notices use short names that nobody explains. Our Three-Word Translation Test turns each into plain words. For the bigger picture see what an Indian fund is, the PFIC guide and our Indian CPA page.
The glossary
| Term | Plain meaning |
|---|---|
| AIF (alternative investment fund) | A private pooled fund for larger investors, not a mutual fund |
| AMC (asset management company) | The company that runs the schemes: the fund house |
| AMFI | The fund houses' industry body. It publishes NAVs but is not the regulator |
| CAS (consolidated account statement) | One statement of all your folios, linked by PAN |
| CRS (Common Reporting Standard) | The OECD system for countries to swap foreign-account data yearly |
| Direct plan | A plan with no distributor commission and its own NAV |
| Excess distribution | In U.S. PFIC rules, a payout above 125% of the 3 earlier years' average. Sale gains count too |
| FATCA | The U.S. law behind India's reports on U.S. persons' accounts |
| FBAR | The U.S. report of foreign accounts when balances together top USD 10,000 at any time |
| FCNR(B) account | A foreign-currency fixed deposit in India for NRIs and OCIs |
| Folio | Your account with a fund house |
| IDCW (income distribution cum capital withdrawal) | A scheme payout that can come from your own capital |
| KID (key information document) | The short standard document EU sellers give retail buyers |
| KYC (know your client) | The identity check needed to invest in India |
| NAV (net asset value) | The price of one unit: net assets divided by units |
| NRE account | A rupee account funded from abroad. Its interest is exempt in India while you are non-resident |
| NRI (non-resident Indian) | An Indian citizen who lives outside India |
| NRO account | A rupee account for Indian income. Its interest is taxable |
| OCI (overseas citizen of India) | A foreign citizen, often of Indian origin, who holds India's OCI card |
| PAN (permanent account number) | India's tax ID, generally needed to invest. SEBI exempts SIPs up to Rs 50,000 a year |
| PFIC (passive foreign investment company) | The U.S. label for a foreign company with mostly passive income or assets |
| Reporting fund | A fund class on HMRC's approved list. Sale gains are capital gains if listed throughout |
| RTA (registrar and transfer agent) | The firm that keeps investor records and sends statements |
| SEBI | India's securities regulator |
| SIP (systematic investment plan) | A fixed amount invested at regular intervals |
| SWP and STP | Regular sale of units, or regular moves between two schemes of one fund house |
| TDS (tax deducted at source) | Indian tax taken before payment |
| TER (total expense ratio) | A scheme's yearly cost as a percent of assets, inside the NAV |
| UCITS | An EU-approved retail fund type. An Indian scheme cannot be one |
| Vorabpauschale | Germany's yearly deemed income on fund value |
Our checklist
The Three-Word Translation Test:
- Pick a term you cannot yet explain.
- Say it in three plain words, such as "unit price" for NAV.
- Check the table, and ask the sender if it is missing.
Common questions
What is the difference between a folio and a demat account?
A folio is your account with the fund house or its registrar. A demat account holds units or shares electronically.
Why is IDCW not simply called a dividend?
It is India's name for a payout that can come from capital. Whether it is a treaty dividend is not settled.
Do terms mean the same in every country?
Not always. A reporting fund is a UK status, a PFIC a U.S. label, and Canada has no PFIC rules. See the [country guides](/indian-mutual-funds/countries/).
Official sources
- SEBI: Master Circular for Mutual Funds, 20 March 2026
- AMFI: Indian Mutual Fund Industry
- IRS: About Form 8621
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