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Terms |
Description |
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Account Statement |
It is the document issued by the mutual fund, giving details of various transactions and holdings of an investor in schemes of the fund. |
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Adjusted NAV (Total Return) |
The Net Asset Value of a unit adjusting for all changes caused due to dividend declaration, bonus etc. assuming reinvestment of distributions made to the investors at the prevailing NAV. |
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Age of Fund |
The time elapsed since the inception of the fund. |
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Alpha Coefficient |
Defined by Jenson in his portfolio evaluation model, it is the excess return of the fund above risk adjusted market return, given its level of risk as measured by beta. An investment with a positive alpha indicates that the fund has performed better than expected and a negative alpha indicates that the fund has under performed, for the level of risk taken by it. |
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Annual Report |
It is the yearly record of a Mutual Fund's performance in an year. Under SEBI's guidelines, it is distributed to investors and/or shareholders. |
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Annual Return |
The percentage change in net asset value of any fund over a horizon of one year, assuming reinvestment of distribution such as dividend payment and bonuses. |
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Annualized Returns |
It is the absolute return over a period either greater or less than a year aggregated to a period of one year. |
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Applicable NAV |
The applicable NAV, if the application is received before that cut-off time on a day as set by the fund. All investments or redemptions are processed at that particular NAV. A different NAV holds if received thereafter. |
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Asset Allocation |
It is a means of diversifying the risk associated with a fund and refers to the distribution of total funds available with the fund into instruments of various types such as stocks, bonds etc. based on the funds investmetn objective. |
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Asset Management Company (AMC) |
It is the investment manager for the mutual fund. It is a company set up primarily for managing the investment of mutual funds and makes investment decisions in accordance with the scheme objectives, deed of Trust and other provisions of the Investment Management Agreement. |
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Automatic Investment Plan |
A plan introduced in mutual funds that enables the investor to give the mandate of allotting fresh units at specified intervals (monthly, quarterly) against which the investor provides post-dated cheques. On the specified dates, the cheques are realized by the mutual fund and on realization, additional units are allotted to the investor at the prevailing NAV. |
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Automatic reinvestment plan |
An investment option available to mutual fund unitholders in which the proceeds from either the fund's dividends, bonus etc. are automatically used to buy more units of the fund. |
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Average cost method |
It is the method of finding out the cost per unit by adding up all the costs involved in purchasing all the units of investment and then dividing the sum by the total number of units. |
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Average Credit Quality |
A measure of the creditworthiness of the debt securities held by a debt fund. It is the weighted average of the credit ratings of the securities given their relative weights in the portfolio. For these calculations, Government of India securities, cash and call money instruments are taken as AAA credit quality and non-rated debt instruments are taken as having BBB credit quality. |