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Mutual Fund Dictionary

Financial term of the month : Asset Allocations


Allocation of the funds held by the mutual fund to various categories of assets such as equity, debt and others. This is based on the investment objective of the scheme.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z



A statement issued by the mutual fund, giving details of transactions and holdings of an investor. This is normally issued in lieu of a unit certificate.

The notional net asset value of a unit assuming reinvestment of distributions made to the investors in any form. This is relevant to calculate the total returns from the fund.

The time elapsed since the launch of the fund.

The percentage of change in net asset value over a year's time, assuming reinvestment of distribution such as dividend payment and bonuses.

Absolute returns over a period (which could be larger or smaller than a year) aggregated to a period of one year. Used for the purpose of comparing returns over different periods.

The NAV at which a transaction is effected. A cut-off time is set by the fund and all investments or redemptions are processed at that particular NAV. This NAV is relevant if the application is received before that cut-off time. If the application is received thereafter, it will be treated as the next day's application and allotted the relevant NAV.

Form prescribed for investors to make applications for subscribing to the units of a fund. Some funds also accept applications on plain paper.

Allocation of the funds held by the mutual fund to various categories of assets such as equity, debt and others. This is based on the investment objective of the scheme.

The company vested with the responsibility of managing investments of the schemes of a fund in line with the stated investment objective of each scheme.

Under these plans, the investor mandates the mutual fund to allot fresh units at specified intervals (monthly, quarterly) against which the investor provides post-dated cheques. On the specified dates, the cheques are realised by the mutual fund and on realisation, additional units at the prevailing NAV are allotted to the investor. This inculcates a healthy and disciplined saving habit.

This is the average price of units purchased by the investor calculated by adding up all the costs involved in purchasing all the units of investment and then dividing the sum by the total number of units.

Average time to maturity of all fixed-period investments in the portfolio of a scheme.

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The views, opinions and recommendations mentioned herein are those of the Investment Advisor alone and should not be construed as investment advice to any party and are not necessarily those of Birla Sun Life Asset Management Company Ltd.(BSLAMC) or any of their officers, employees, personnel, directors and further, BSLAMC / its subsidiaries / affiliates / sponsors / trustee or their officers, employees, personnel, directors make no representation or warranty, express or implied, as to the accuracy, completeness or reliability of the content and shall not be liable for any loss, damage, liability whatsoever for any direct or indirect loss arising from the use or access of such information.

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