Welcome to our discussion on the Association of Mutual Funds in India (AMFI). As you may know, this organization is a part of the Securities Exchange Board of India and its ...
These funds have a higher management fee compared to passively managed funds where the manager simply tracks the performance of a market index.
Actively managed funds refer...
The Net Asset Value (NAV) of a unit is an important measure in finance that takes into account all changes resulting from dividend declarations, bonuses, and other factors. ...
Investors often gauge the success of their investments by looking at the annual return rate, which is the percentage of profit they earn on their investment each year. This ...
A type of investment known as 'arbitrage' utilizes the discrepancies in security prices between two markets to generate profits. This strategy is considered to be low risk a...
This strategy helps to minimize risk and maximize returns.
Asset allocation is a crucial aspect of managing your investments. It involves diversifying your portfolio by all...
A financial institution that consolidates funds from multiple individuals and manages investments on their behalf is known as a "mutual fund." These funds are typically over...
This figure is a key metric in the financial industry, as it reflects the size and success of a fund or portfolio. AUM can fluctuate based on market performance and investor ...
This measure is used to calculate the sensitivity of a portfolio to changes in interest rates and is a key factor in risk management.
As a financial expert, it is crucial t...
Let's discuss one of the most popular investment vehicles in the market - Balanced Funds. These mutual funds are carefully crafted to include a mix of stocks and bonds, with...
Mutual fund performance is often evaluated against a benchmark, which serves as a reference point for measuring success. This comparison is useful in determining the fund's ...
Beta is a fundamental concept in finance that allows us to assess the risk associated with a particular mutual fund. It is derived by dividing the covariance of the fund by ...
Allow me to introduce you to a type of investment known as a closed-end fund. These funds are created by fund houses with a fixed number of units available for purchase at t...
Bond issuers make regular interest payments to bondholders known as Coupon Payments. These payments are typically made semi-annually or annually and are based on the bond's ...
Cut-off time is a critical concept in finance that dictates the day in which your transaction will be recorded. Essentially, it is the last moment during the day that your t...
Debt Funds, also referred to as fixed income funds, are mutual fund schemes that primarily invest in securities that generate a fixed income. These securities include Certif...
Default Risk is a key concept in finance, referring to the likelihood that a borrower will be unable to meet their contractual financial obligations. Essentially, it is the ...
A Direct Plan is a straightforward investment option where the investor can directly invest with the Asset Management Company (AMC) without any involvement of intermediaries...
A crucial aspect of investing in stocks is understanding the concept of dividend payout. With this option, you, as an investor, are entitled to receive any dividends declare...
In the world of finance, there exists a type of investing known as DRIP, or Dividend Reinvestment Plan. This scheme allows for the automatic reinvestment of dividends into p...
This technique is often used to take advantage of the tax laws and maximize profits.
Dividend Stripping is a common strategy used by investors to minimize their tax burden ...
A mutual fund is an investment scheme that pools money from various investors and invests it in equities and equity-related securities. These funds have a lock-in period of ...
Entry load refers to a fee imposed by the Asset Management Company (AMC) on investors when purchasing a specific financial scheme. This charge has been prohibited by the Sec...
In the world of finance, there exists a type of investment known as Mutual Funds. These funds can be categorized as Equity Funds or Stock Funds, depending on their primary f...
ETF, or exchange-traded fund, is a group of securities that can be bought and sold through a brokerage firm on the stock exchange. It offers investors a diversified portfoli...
Mutual fund houses often levy an exit load when an investor chooses to withdraw their units or exit a scheme. This charge is applicable only if the exit is made within a spe...
Mutual funds scheme involves various charges, collectively known as Expense Ratio. These include management fees, advertising costs, allocation fees, and commission, among o...
A mutual fund scheme refers to an investment vehicle that pools money from various investors and invests it in a diverse portfolio of securities. One such type of mutual fun...
It is important to keep track of your folio number as it is required for all transactions and correspondence with the fund.
Mutual funds are a popular investment avenue, bu...
Mutual funds can be categorized based on the type of assets in which the corpus is invested. These categories include equity, debt, balanced, tax saving, liquid, and others....
In the world of finance, the fund house or asset management company (AMC) serves as the investment manager for a Mutual Fund. This entity is responsible for carrying out all...
An individual designated by an asset management company (AMC) to oversee the management of a fund. This entails making strategic investment choices in accordance with the fun...
This type of investment offers diversification and professional management, but also incurs additional fees and expenses.
A Fund of Funds is a type of investment that involv...
Mutual Funds are a popular investment option that pools money from various investors to purchase a diverse range of assets, such as stocks, bonds, and government securities....
Mutual funds, a popular investment tool, offer investors an opportunity to diversify their portfolio by investing in international companies. These funds, also known as glob...
A mutual fund of this nature does not distribute regular payouts or dividends to the investor....
A mutual fund scheme aims to increase capital over an extended period, and any profits are reinvested into the scheme. Unlike other schemes, there are no dividends paid to i...
It is an important concept in finance as it helps in determining the rate of return on an investment. The holding period could vary from a few days to several years, dependin...
An index fund is a type of mutual fund that is designed to replicate the performance of a specific market index. The fund is managed by investing in the same securities that...
This ensures that the real value of the investment is not eroded over time.
Hello class, today we will be discussing the concept of indexation in finance. Indexation refers ...
Mutual Funds are a popular investment vehicle that pools money from multiple investors to invest in various financial instruments. Understanding the investment objective of ...
It involves making informed decisions about the allocation of funds, diversification of assets and balancing risk and return. Asset allocation is a key component of investmen...
The launch date is an important aspect in the world of finance, specifically in the realm of mutual funds. It marks the public availability of a mutual fund scheme for subsc...
As a finance expert, it is important to understand the concept of Liquid Funds. These are mutual funds that invest in short-term money market instruments such as treasury bi...
Investors must be aware of the lock-in period, which restricts them from redeeming their units immediately after making new investments. This time frame is predetermined and...
An essential concept in finance is the minimum investment required for an existing investor to acquire additional units. This amount is determined by the mutual fund company...
A mutual fund scheme requires a minimum investment in order to purchase its units. This amount is typically set by the fund manager and can vary depending on the specific sc...
In finance, there exists a particular type of financial instrument that is known as a "pooled investment vehicle." This vehicle collects funds from individual investors, kno...
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Let's discuss a fundamental concept in finance - Net Asset Value or NAV. Simply put, it is the unit price of one unit of a mutual fund. NAV is calculated by subtracting the...
NFOs are generally open for a limited period, after which they are listed and traded on stock exchanges.
An NFO is essentially a fundraising opportunity for AMCs to invest ...
A sales load is a common fee charged for the buying and selling of mutual fund shares through an intermediary. However, there are certain types of mutual funds that do not im...
This prospectus provides information about the fund's objectives, investment strategies, risks involved, and the fees and expenses associated with the investment.
Mutual fu...
An Open-ended Mutual Fund is a type of fund that becomes available after the New Fund Offer (NFO) ends. It allows individuals to enter and exit the fund at any time after it...
A passive fund is an investment option that utilizes a market index or a specific market segment to determine its portfolio's composition and identify potential investment o...
They are experts in financial analysis and are well-versed in various investment strategies and asset classes. Their primary goal is to maximize returns while minimizing risk...
Mutual funds offer a convenient and popular avenue for investors to diversify their portfolio. As a professor of finance, it is my duty to shed light on a fundamental conce...
A crucial tool in the arsenal of investors, benchmarking involves a statistical comparison of a fund to its benchmark. It serves as a yardstick to gauge the performance of a...
As a knowledgeable finance professor, allow me to guide you on the concept of redeeming mutual fund units. When you decide to exit your mutual fund investment, you can sell ...
A key concept in finance is the repurchase agreement, also known as a repo. This is an agreement between a buyer and seller for the sale and repurchase of a security at a fu...
In the world of finance, a crucial document to understand is the fund offer. This document is filled with valuable information about a particular scheme, including the minim...
These funds provide a way for investors to invest in a specific sector without having to choose individual companies themselves.
Sector Funds, also known as Sector Mutual Fu...
The Sharpe Ratio, also known as the Sharpe Index or Modified Sharpe Ratio, is a valuable tool for evaluating the performance of an investment. This metric takes into account...
Switching refers to the process of transferring funds from one investment scheme to another within the same Asset Management Company (AMC). This allows investors to realloca...
It is a convenient tool for investors who want to diversify their portfolio and minimize market risk.
A Systematic Transfer Plan, also commonly referred to as STP, is a pop...
It is a disciplined approach to managing investments and allows for regular income stream while still keeping the invested amount intact. This option is suitable for individu...
It takes into account not only the change in value of the investment, but also any income generated, such as dividends or interest.
Let us delve into the concept of Total R...
This is known as tracking error.
Tracking error refers to the distinction between the performance of a particular index and the results of an investment portfolio. This ter...
To understand the concept of turnover, imagine a fund that holds a diverse portfolio of assets. The turnover ratio is calculated by dividing the total value of transactions,...
Unit Trusts are a popular choice for individual investors due to their diversification and professional management.
A Unit Trust is a type of investment vehicle that operate...
A mutual fund is a pool of money collected from many investors to invest in securities.
A key term in the realm of finance is "unitholder." This refers to an individual who...
In contrast, Growth Stocks are those that have higher potential for growth and are favored by investors looking for higher returns.
Value Stocks refer to stocks that trade ...
This yield can be measured by the fund’s annualized return. The yield reflects the fund’s performance and is influenced by various factors such as the market conditions, inte...
