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Terms |
Description |
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Floating Rate Bonds |
These are short to medium term interest bearing instruments issued by financial intermediaries and corporates. These bonds are issued for minimum amount of Rs. 10,000 and in multiples of Rs. 10,000 only. The typical maturity of these bonds is 3 to 5 years. |
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Free Loading |
A term used when mutual fund investors who have purchased load funds switch from one fund family to another family of funds without having to pay another sales charge. Not all funds families have freeloading procedures. |
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Face Value |
The original issue price of one unit of a scheme |
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First-In, First-Out (FIFO) |
A commonly used mechanism for the taxation purpose of redeemed mutual fund shares, it is an accounting method which assumes that the units purchased first are the units sold first. |
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Fund Category |
Classification of a scheme depending on the type of assets in which the mutual fund company invests the corpus. It could be a growth, debt, balanced, gilt or liquid scheme |
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Fund Family |
All the schemes, which are managed by one mutual fund. |
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Fund Management Costs |
The charge levied by an AMC on a mutual fund for managing their funds. |
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Fund Manager |
Appointed by the AMC, he is the person who makes all the final decisions regarding investments of a scheme. |