Account Statement

This is a list of transactions in your mutual fund portfolio over a specific period of time (purchases, redemptions, dividends, etc.).

Acid Test Ratio

It is the ratio shown by dividing the current assets of a company by current liabilities. It reflects a company's financial strength and is therefore known as the Acid test ratio.

Addendums and Notices

A mutual fund scheme proposal report provides all the information including investment goal, risk factors, sponsor track record, academic training, and key personnel work experience. Nevertheless, many of the particulars of the scheme that change, which is provided in the form of an addendum by the fund house. These addendums and notices are available on the fund house website and also get published in the national dailies.

Adjusted NAV

A unit's Net Asset Value (NAV) was determined after changes due to distributions such as dividend report, bonus, etc. It is believed that reinvestments of dividends for the purposes of calculating Adjusted NAV are made to the investors at the prevailing NAV. It is a long-established fact that when looking at its format, a reader will be distracted by a page's readable content. The point of using Lorem Ipsum is that it has a more or less normal letter distribution, as opposed to using' Content here, content here,' which makes it look like English is readable. Most desktop publishing packages and web page editors are now using Lorem Ipsum as their standard template script, and a' lorem ipsum ' search will discover most websites that are still in their infancy. Over the years, various versions have evolved, sometimes by mistake, sometimes deliberately (humor injected and the like).


A person or firm offering professional financial advice.

Age of Fund

Time period that has elapsed since the setting up of the fund


According to its level of risk (as calculated by beta), Alpha calculates the difference between the actual returns of a fund and its expected performance. A positive alpha figure indicates that the fund has performed better than predicted by its beta. In comparison, a negative alpha means that, given the expectations set by the beta of the fund, a fund has underperformed. Many investors see alpha as a measure of the interest that a fund manager adds or subtracts. Alpha's ability to accurately depict the added or subtracted value of a manager is limited. In some cases, the expenses that are present in the fund figures but are not present in the comparison index figures may result in a negative alpha. Alpha depends on beta accuracy: if the investor recognizes beta as a measure of risk, a positive alpha would be a conclusive indicator of good fund results.

American Depositary Receipt (ADR)

Non-US shares traded in US dollars in U.S. stock exchanges. ADRs work like any other share we know of. These are negotiable receipts held in a U.S. bank that represent a small number of actual shares (known as ADS). ADRs simplify investment for the American public. So when Americans bought Nasdaq-listed Infosys shares, they could do so in dollars directly without translating them from rupees. These companies are required by a common accounting rule to report financial results, thereby making their profits more visible. There are no voting rights in the company for an American investor holding an ADR.

Annual Fund Operating Expenses

The costs paid by the Asset Management Company for handling the assets during a given year.

Annual Return

The improvement in a fund's Net Asset Value (NAV) percentage over a year based on the assumption of reinvestment of dividends such as dividend ayment and rewards.

Applicable NAV

Net Asset Value (NAV) of applications submitted before a specified cut-off date for a fund is accounted for all contributions and redemptions.

Application Amount for Fresh Subscription

This is the minimum amount of investment in a mutual fund scheme for a new investor.

Application Form

From that when investing in a mutual fund, the investor needs to fill in all his information.


It ensures the value of your savings is improved.


(1) Technically, arbitration consists of buying a product or security for immediate sale in another market (deterministic arbitration) in one market.
(2) Popular use has extended the meaning of the term to include any activity that attempts to buy a relatively low-priced item and sell a similar item that is relatively overpriced, expecting profit when prices resume a more appropriate theoretical or historical relationship (statistical arbitration).
(3) Arbitrage techniques can be applied in trading options, convertible securities, and futures whenever a strategy involves the purchase and sale of related instruments packages.
(4)Risk arbitration refers to mergers and other major corporate transactions the concept of risk balance. The position(s) of risk offsetting does not exclude the investor from certain event risks (such as breaching a merger agreement on the risk of completing a deal within a certain period of time) so that the arbitration is incomplete.
(5)Tax arbitrage deals are conducted to share the gain of two or more parties ' unequal tax rates or circumstances.
(6)Regulatory arbitration transactions are intended to provide indirect access to a market for risk management where the law or regulation denies one party direct access.
(7) Swap-driven arbitration agreements are based by the comparative advantages that swap counterparties enjoy in various debt and currency markets. On the intermediate or long-term U.S. dollar market, one counterparty may borrow at a relatively lower rate, while the other may have a comparative advantage in sterling floating rate.


Any asset of economic value, tangible or intangible.

Asset Allocation

Investment Portfolio Division among various categories such as equity, fixed income, liquidity, gold, etc. This depends on age and ability to tolerate risk. In order to optimize risk, the method of diversifying investment into various types of assets such as shares, bonds, real estate, money. Asset allocation is an investment strategy aimed at spreading the portfolio of investors across multiple assets such as equities, bonds, gold, and cash by age, goals, risk tolerance, and investment horizon.

Asset Allocation Fund

A fund that extends its portfolio across a wide range of holdings, including domestic and foreign stocks and bonds, government securities, gold bullion, and stocks of real estate. Some of these funds keep the allocated ratios fairly stable between different sectors, while others change the balance as market conditions change.

Asset Management Company(AMC)

AMC or Asset Management Company is the Mutual Fund Investment Manager who manages on behalf of investors the pool of investor money.

Assets Under Management (AUM)

Assets Under Management (AUM) is the total market value of the funds (assets) held on behalf of its owners by an asset management firm.

Automatic Investment Plan

A scheme provided by most mutual funds that automatically deducts a small fixed sum monthly from the bank account of an investor and invests in the mutual fund of their choice.

Automatic Reinvestment

An investment opportunity for owners of mutual fund units where the proceeds from either the dividends or capital gains of the fund, or both, are used automatically to buy more units of the funds.

Average cost method

A method of calculating the cost per unit by adding all the costs incurred in purchasing all the units of an investment and then multiplying the sum by the total number of units.

Average Maturity

In their portfolio, pure debt and hybrid mutual funds have different types of fixed income instruments with each having a maturity date. Overall maturity refers to the overall maturity in the fund's portfolio of the whole debt instrument. Average maturity gives an idea of how sensitive the debt fund is to interest rate changes. Longer maturity fixed income instruments are more volatile than those with shorter maturity.