Sponsor :
Sponsor is the promoter of the MF and appoints trustees, custodians and the AMC with prior approval of SEBI .
Sponsor is the promoter of the MF and appoints trustees, custodians and the AMC with prior approval of SEBI .
Trustee :
Trustee is responsible to the investors in the MF and appoint the AMC for managing the investment portfolio.
Trustee is responsible to the investors in the MF and appoint the AMC for managing the investment portfolio.
AMC :
The AMC describes Asset Management Company, it is the business face of the MF, as it manages all the affairs of the MF.
The AMC describes Asset Management Company, it is the business face of the MF, as it manages all the affairs of the MF.
R & T Agents : the R&T
Agents are responsible for the investor servicing functions, as they maintain the records of investors in MF.
Agents are responsible for the investor servicing functions, as they maintain the records of investors in MF.
Custodians :
Custodians are responsible for the securities held in the mutual fund’s portfolio.
Custodians are responsible for the securities held in the mutual fund’s portfolio.
Scheme take over :
If an existing MF scheme is taken over by the another AMC, it is called as scheme take over.
If an existing MF scheme is taken over by the another AMC, it is called as scheme take over.
Meaning of load:
Load is the factor that is applied to the NAV of a scheme to arrive at the price.
Load is the factor that is applied to the NAV of a scheme to arrive at the price.
Market capitalization :
Market capitalization means number of shares issued multiplied with market price per share.
Market capitalization means number of shares issued multiplied with market price per share.
Price earning ratio :
The ratio between the share price and the post tax earnings of company is called as price earning ratio.
The ratio between the share price and the post tax earnings of company is called as price earning ratio.
Dividend yield :
The dividend paid out by the company, is usually a percentage of the face value of a share.
The dividend paid out by the company, is usually a percentage of the face value of a share.
Market risk :
It refers to the risk which the investor is exposed to as a result of adverse
It refers to the risk which the investor is exposed to as a result of adverse
movements in the interest rates. It also referred to as the interest rate risk.
Re-investment risk :
It the risk which an investor has to face as a result of a fall in the
It the risk which an investor has to face as a result of a fall in the
interest rates at the time of reinvesting the interest income flows from the fixed income security.
Call risk :
Call risk is associated with bonds have an embedded call option in them. This option hives the issuer the right to call back the bonds prior to maturity.
Call risk is associated with bonds have an embedded call option in them. This option hives the issuer the right to call back the bonds prior to maturity.
Credit risk :
Credit risk refers to the probability that a borrower could default on a
Credit risk refers to the probability that a borrower could default on a
commitment to repay debt or band loans
Inflation risk :
Inflation risk reflects the changes in the purchasing power of the cash flows
Inflation risk reflects the changes in the purchasing power of the cash flows
resulting from the fixed income security.
Liquid risk :
It is also called market risk, it refers to the ease with which bonds could be traded in the market.
It is also called market risk, it refers to the ease with which bonds could be traded in the market.
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