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Terms |
Description |
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Capital Gains |
The profit realizations on sale of securities and certain other capital assets (including units of mutual funds) are called capital gains. The gains can be classified into long-term or short-term depending on the period of holding of the asset and are charged to tax at different rates. Gains on mutual fund units held for a period of 12 months or more are long-term gains. |
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Certificates of Deposit (CD) |
Certificate of Deposit (CD) is issued by scheduled commercial banks excluding regional rural banks. These are unsecured negotiable promissory notes. Bank CDs have maturity of 91 days to one year, while those issued by DFIs have maturities between one and three years. |
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Close-Ended Schemes |
They are schemes that have a pre-specified maturity period generally ranging from 2 to 15 years. One can invest directly in the scheme at the time for the initial issue and thereafter transact (buy or sell) the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchanges could vary from the scheme's net asset value (NAV) on account of demand and supply situation, unitholders' expectations and other market factors. Some close-ended schemes provide an additional option of selling the units directly to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations ensure that at least one of the two exit routes are provided to the investor. |
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Commercial Paper |
Commercial paper (CP) is a short term, unsecured instrument issued by corporate bodies (public & private) to meet short-term requirements of working capital. Maturity varies between 3 months to 1 year. CP is issued at a discount. These can be issued to any |
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Compliance Officer |
He is the officer appointed by the AMC to comply with various regulatory requirement and to redress investor grieviences associated with the funds. |
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Contingent Deferred Sales Charge (CDSC) |
It is the sales load charged by funds in the event of redemptions made within a pre-specified period of purchase. This charge is linked to the period of unit-holding and generally has an inverse relation with the holding period. |
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Corpus |
The total amount of money invested by all the investors in a scheme. |
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Cost Of Churning/Turnover cost |
It refers to the costs associated with the churning (or changes made to the holdings) of the portfolio. Portfolio changes have associated costs of brokerage, custody fees, transaction fees and registration fees, which lower the returns. The quantum depends on the managementstyle of teh fund manager. |
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Coupon Rate |
The annual rate of interest payable on a debt security, expressed as a percentage of the face value of the instrument. |
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Current Load |
It refers to the load structure applicable currently on any fund. Funds keep revising the load structures from time to time. |
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Current Yield |
The ratio of interest to the actual market price of the bond expressed as a percentage: annual interest/ current market value = current yield |
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Custodian |
The keeper of a fund's securities and other assets. |
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Cut off Time |
In respect of all mutual funds regulated by SEBI, fresh subscriptions and redemptions are processed at a particular NAV. Every fund specifies a cut-off time in respect of fresh subscriptions and redemption of units. All requests received before the cut-off times are processed at that day's NAV and thereafter at the next day's NAV. |