EN

Glossary

Advisor

A financial consultant who offers professional advice on investment in Mutual funds and supervises management of the assets.

Annualized Return

Annualized return is the hypothetical annual rate of return calculated over a longer or shorter period of time and annualized for comparison with a 1-year return. It is expressed as a percentage and is calculated under the assumption that all dividends and capital gains are re-invested

Arbitrage

An equity share trading on more than one stock exchanges might have minute price difference. Arbitrage is the practice of buying the stock on one exchange and selling on another one in order to book profits.

Asset

Property and resources, such as cash and investments, comprise a person's assets; i.e., anything that has value and can be traded. Examples include stocks, bonds, real estate, bank accounts, and jewellery.

Amortization

A method of equated monthly payments over the tenure of a loan. Repayment of a loan is usually done in monthly installments; however, other repayment frequencies might also be offered by some lenders (quarterly/ annually / any other frequency). During the early part of any loan, repayment of the interest is higher than that of the principal. This relationship is reversed enduring the later stages of the loan.

Appreciation

When an investment increases in value, it appreciates. For example, an equity share whose price goes from Rs. 20/- to Rs. 25/- has appreciated by Rs. 5/-.

The asked or offering price means the current net asset value (NAV) per share plus sales charge, if any. For a no-load fund, the asked price is the same as the NAV.

Basa

An equity share trading on more than one stock exchanges might have minute price difference. Arbitrage is the practice of buying the stock on one exchange and selling on another one in order to book profits.