Investment glossary

The distribution of a portfolio across asset classes such as equity, debt and cash.

The total market value of assets managed by a mutual fund scheme or fund house at a given time.

A market index or reference portfolio used to evaluate a scheme’s performance and risk.

The difference between sale value and applicable acquisition cost when an investment is transferred, subject to tax rules.

The process through which returns can earn further returns when gains remain invested.

A mutual fund plan bought without distributor commission; it generally has a lower expense ratio than the regular plan of the same scheme.

An equity-linked savings scheme with a statutory three-year lock-in and tax treatment subject to prevailing law.

The tax rules applied to gains and distributions from equity-oriented mutual funds under prevailing Indian law.

A charge that may apply when units are redeemed before a scheme-specific holding period.

The annual operating cost of a mutual fund scheme expressed as a percentage of its average assets.

The investment professional responsible for implementing a scheme’s investment strategy within its mandate.

The possibility that an investment outcome differs from expectations, including loss, volatility or failure to meet a goal.

A one-time investment made into a scheme instead of a scheduled series of instalments.

A pooled investment vehicle that collects money from investors and invests it according to a stated scheme objective.

The per-unit value of a mutual fund scheme after subtracting liabilities from the market value of its assets.

The degree to which a portfolio depends on a small number of holdings, sectors or issuers.

A security or instrument disclosed as part of a mutual fund scheme’s portfolio.

The extent to which two or more portfolios own the same securities, usually assessed using holdings and weights.

Restoring a portfolio toward its intended allocation after market movement or changed circumstances.

SEBI’s standardized label indicating the assessed risk level of a mutual fund scheme.

A risk-adjusted measure comparing excess return with return volatility; it should be interpreted with comparable data and periods.

A facility for investing a fixed amount in a mutual fund scheme at regular intervals.