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Terms |
Description |
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Debt /Income Funds |
Funds that invest in income bearing instruments such as corporate debentures, PSU bonds, gilts, treasury bills, certificates of deposit and commercial papers. These funds are the least risky and are generally preferred by risk-averse investors. |
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Discount |
When the market price of a listed scheme is less than the actual NAV of the units, then it is said to be tradiing at a discount. |
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Diversification |
Spreading the risk; Mutual funds spread investments among a number of different securities to reduce the risk inherent in investing. |
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Dividend Distribution Tax |
A tax payable by a debt oriented mutual fund (a mutual fund that invests more than 50% of its portfolio in the debt market) before dividend is distributed to the unit holders. The current Dividend Distribution Tax is 10% plus the 10% surcharge. There is no such tax applicable on open-end equity schemes. |
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Dividend Frequency |
The periodicity of dividend payout of a scheme. This is especially valid in the case of an income/debt schemes like monthly income plans that normally have a regularity in such distributions. |
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Dividend History |
The track record of dividends declared by a fund till date. |
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Dividend Per Unit |
Total amount of dividend declared by a fund for a scheme divided by total number of units issued to all the investors. |
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Dividend Plan |
In a dividend plan, the fund pays dividend from time to time as and when the dividend is declared. |
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Dividend Reinvestment |
In a dividend reinvestment plan, the dividend is reinvested in the scheme itself and is not paid out to the investors. That is, instead of receiving dividend in cash, the unit holders receive units allotted to them at the Ex-dividend NAV. |
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Dividend Warrant |
It is an instrument issued by companies/ mutual funds to an investor for the purpose of payment of dividends. |
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Dividend Yield |
It refers to the dividend earned per unit of a scheme at the prevailing per unit price. |
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Dividends |
Mutual fund dividends are paid out of income from the scheme's investments and can be announced out of the realized gains only. While dividends in the hands of the investor are free from tax, mutual funds are now required to pay a "distribution tax" for dividends declared from debt-oriented schemes. |
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Dow Jones Index |
It is an American index similar to the BSE Index. Here the basket comprises 30 blue chip American stocks whose prices are indicative of the health of the economy. |