Evaluation of credit risk in fixed income securities. This evaluation is specific to the security rated and is done in India by Crisil, Icra, Care and Duff & Phelps. The rating is a symbolic indicator of the current opinion of the relative capability and timely servicing of debts and obligations. Ratings are based on an objective analysis of the information. The rating could be done in respect of the creditworthiness of debt instruments, risk of loss in an investment or the performance of an investment.
The date by which mutual fund holders are registered as unit owners to receive any future dividend or capital gains distribution. It is the date announced by the company/mutual fund, which is a cut-off date for corporate benefits like dividends, rights, bonus etc. Only investors whose names appear in the companys registers on that date are eligible for the said benefits.
An arrangement provided by the fund management whereby regular purchases of small or large numbers of units may be allowed. The plan sometimes also provides for automatic reinvestment of income dividends and capital gains distribution.
The arrangement that the fund provides; whereby unit-holders can receive periodic payments in a specified amount. These amounts may be more or less than the income of the fund.
A kind of sales charge, also referred to as a back-end load, imposed when an investor redeems, or sells back units of the fund.
Buying back/cancellation of the units by a fund on an on-going basis or on maturity of a scheme. The investor is paid a consideration linked to the NAV of the scheme.
The price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related.
It is a plan where the earnings of a mutual fund scheme are reinvested back in the fund.
It is the risk that the interest on fixed income instruments cannot be reinvested at the same rate. This problem becomes pronounced in a falling interest rate scenario.
The institution that maintains a registry of unit-holders of a fund and their unit ownership. Normally the registrar also distributes dividends and provides periodic statements to unit-holders.
Buying back/ cancellation of the units by a fund on an ongoing basis or for a specified period or on maturity of a scheme. The investor is paid a consideration linked to the NAV of the scheme
In the case of close-ended schemes, the specified date on which or period during which the investor can redeem units held by him in the scheme before the maturity of the scheme.
The price of a unit (net of exit load) that the fund offers the investor to redeem his investment.
Reserve Bank of India, established under the Reserve Bank of India Act, 1934, is the Central Bank in India.
Right provided to the unit-holder of reduced sales charge on the units purchased if the total number of the units bought over a period of time exceeds a certain pre-determined amount.
The expected returns from an investment depend upon the risk involved in the investment. For the purpose of comparing returns from investments involving varying levels of risk, the returns are adjusted for the level of risk before comparison. Such returns (reduced for the level of risk involved) are called risk-adjusted returns.
Absence of credit risk in a security. Usually Government or Government guaranteed securities are only considered to be risk free.
The act of legally returning to the country of origin. Often used in connection with currency conversion, when foreign currency is brought into the home country and converted to the local currency.