Contact Us

CALL US

Anmolshare

+91–80–40463100

WhatsApp for Trading

+91-9663611100

Back office or Customer service support

+91-9980411100

REACH US

Anmolshare
Anmol Share Broking Pvt Ltd
Corporate & Registered Office
4th Floor, Bhagavathy Towers,
No.52, 33rd Cross,
Jayanagar 4th Block,
Bengaluru
-560011. Karnataka. India,
Follow us
A Company registered with SEBI, which takes investment/divestment decisions for the mutual fund, and manages the assets of the mutual fund.
The process of diversifying the investments in different kinds of assets such as stocks, bonds, real estate, cash in order to optimize risk.
An investment option for mutual fund unit holders in which the proceeds from either the fund's dividends or capital gains, or both, are automatically used to buy more units of the funds.
The commission or charge paid when an investor exits from a mutual fund. They are basically imposed to discourage withdrawals.
Balanced fund include both equity and debt schemes, with 50-75 per cent in equity and the rest in debt.
An unmanaged group of securities whose performance is used as a standard to measure investment performance. Commonly known as a market index. Some well-known benchmarks are the BSE Sensex and NSE Nifty.
The price at which a mutual fund's shares are redeemed (bought back) by the fund. The bid or redemption price is the current net asset value per share, less any redemption fee or back-end load.
Mutual fund that invests in blue chip stocks. Typically a growth fund.
A rise in market value of a mutual fund's securities, reflected in its net asset value per share. This is a specific long-term objective of many mutual funds.
A mutual fund scheme in which the investors commit their money for a particular period.
The interest rate stated on a bond when it's issued. The coupon is typically paid semi-annually.
Total amount of money invested by all investors in a scheme.
Average credit quality gives a snapshot of the portfolio's overall credit quality. It is an average of each bond's credit rating, weighted by the relative size in the portfolio.
The bank or trust company that maintains a mutual fund's assets, including its portfolio of securities or some record of them. The custodian provides safekeeping of securities but has no role in portfolio management.
This fund invests in fixed income instruments such as debentures (bonds), Treasury Bills etc. Preferred by investors who want steady income and not willing to take much of risk.
In a dividend plan the fund pays dividend from time to time as and when the dividend is declared.
Average duration provides a measure of a fund's interest-rate sensitivity the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. The relationship between funds with different durations is straightforward: A fund with a duration of 10 years is twice as volatile as a fund with a five-year duration. Duration also gives an indication of how a fund's NAV will change as interest rates change. A fund with a five-year duration would be expected to lose 5% from its NAV if interest rates rose by one percentage point or gain 5% if interest rates fell by one percentage point.
Mutual Funds charge investors an entry load of upto 2.25% to compensate for distribution costs. It is charged at the time an investor purchases the units of a scheme. Since August 2009, SEBI had done away with entry load in cases where the investors directly invested in mutual funds without going through an agent or a distributor.
This is a scheme that invests only in equity.
The major portion of investment in ELSS is in equity. The dividends in this scheme are tax-free.
The individual responsible for making portfolio decision for a mutual fund.
A mutual fund whose primary investment objective is long-term growth of capital.
Length of time that an individual holds a security
This is a fund's most recently reported top securities (excluding cash and cash equivalents for all but short-term bond funds). The securities are ranked by the percentage of the portfolio's net assets they occupy. With this information, investors can more clearly identify what drives the fund's performance.
A fund that specializes in the purchase of securities that match or represent a specific index. For example, BSE 30 index is a fund that seeks to mimic the returns represented by the BSE Sensex.
A mutual fund that primarily seeks current income rather than growth of capital. It will tend to invest in stocks and bonds that normally pay high dividends and interest.
A Mutual Fund (MF) is a form of trust that pools the funds of a whole lot of investors to make more money by investing in an array of financial instruments.
A profit on the sale of a mutual fund share that has been held for more than one year
Period during which an investor is restricted from selling a particular investment.
A liquid fund is the same as a money market fund, but avoids a lock-in period.
The annual percentage return which is considered to be for a specific valuation in an investment being expressed as the ratio of annual net income (actual or estimated) to the capital value. It is therefore a measure of an investor's opinion about the prospects and risks attached to that investment. The better the prospects and lower the risks, the lower the expected yield and thus the greater the capital value.
The financial goal (long-term growth, current income, etc.) that an investor or a mutual fund pursues.
The amount a mutual fund pays to its investment advisor for services rendered, including management of the fund's portfolio. In general, this fee ranges from .5% to 1% of the fund's asset value.
A mutual fund that invests only in money markets such as commercial papers, commercial bills, and treasury bills certificate of deposit and other instruments specified by RBI. These funds have a minimum lock-in period of 15 days. Till recently, the RBI regulated money market funds but they now come under SEBI.
The current market worth of a mutual fund share. Calculated daily by taking the funds total assets: securities, cash and any accrued earnings, deducting liabilities, and dividing the remainder by the number of units outstanding.
NAV represents the value of a unit in the scheme and is the main performance indicator for a mutual fund.
Mutual fund schemes that continuously offer new units to the public are called open-ended schemes. They offer units for sale without specifying any duration for redemption.
Are the expenses that a company incurs for normal cause of business. Includes cost of raw material, wages, etc.
A professional hired by the mutual fund advisor to make investment decisions concerning the purchase and sale of securities for the mutual fund portfolio in accordance with the fund's objectives.
The commission or charge paid when an investor exits from a mutual fund. They are basically imposed to discourage withdrawals.
The price at which a mutual fund's shares are redeemed (bought back) by the fund. The redemption price is usually equal to the current net asset value per share. Also called the bid, call or sell price.
The measure of an investor's ability to withstand volatility in the markets. Investors with a near-term focus are likely to be more conservative than those with a long-term viewpoint who can benefit from the market's fluctuations by taking advantage of compounding and historical growth of the markets.
At redemption, some funds offer investors the option of reinvesting the amount. An investor happy with the fund's performance may opt to continue.
A system of investing in which individual re-invests money into the same mutual fund on a regular basis, usually monthly.
SIP works on the principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs 500 each in place of a one-time investment of Rs 5,000 in an MF. Thus, you can invest in an MF without altering your other financial liabilities. It is imperative to understand the concept of rupee cost averaging and the power of compounding to better appreciate the working of SIPs.
Moving money from one scheme to another with in the fund family.
Many mutual funds offer withdrawal programs whereby shareholders receive payments from their investments. These payments are usually drawn from the fund's dividend income and capital gain distributions, if any, and from principal only when necessary.
Just as shares represent the extent of equity ownership in a company, units represent your extent of ownership in a mutual fund.
An investor who invests money in mutual funds.
To sell the units of mutual fund.
The facility to periodically redeem mutual fund and have proceeds mailed directly to the investor.
12 TERMINOLOGIES RELATED TO MUTUAL FUNDS THAT ARE IMPORTANT:
An Asset Management Company is the fund house or the company that manages the money.
The mutual fund is a trust registered under the Indian Trust Act. It is initiated by a sponsor. A sponsor is a person who acts alone or with a corporate to establish a mutual fund. The sponsor then appoints an AMC to manage the investment, marketing, accounting and other functions pertaining to the fund.
For instance, ABN AMRO Trustee (India) Private Limited is appointed as the trustee to the ABN AMRO mutual fund.
ABN AMRO Asset Management (India) Limited is appointed as its investment manager.
Various funds with different objectives can be floated under the umbrella of one parent.
So ABN AMRO Equity Fund, ABN AMRO Opportunities Fund and ABN AMRO Flexi Debt Fund are all independent schemes of ABN AMRO Mutual Fund. They are managed by the ABN AMRO AMC.
The Net Asset Value is the price of a unit of a fund. When a fund comes out with an NFO, it is priced Rs 10. Later, depending on the value of the investments, this price could rise or fall.
This is a fee that is charged when you buy or sell the units of a fund.
When you buy the units of a fund, you pay a percentage of it as a fee. This is known as the entry load.
Let's say you are investing Rs 10,000 and the entry load is 2%. That means you pay Rs 200 as the entry load and Rs 9,800 is invested in the fund.
Now, let's assume you are selling the units of your fund. And the Rs 10,000 you invested initially is now Rs 15,000. Let's further assume the exit load is 2%. So you pay Rs 300 and get back Rs 14,700.
Generally, if funds charge an entry load, they will not charge an exit load. Or vice versa. Only one of the loads is charged.The load is a percentage of the NAV.
This is the term given to all the investments made by the fund as well as the amount held in cash.
Let's assume a very small mutual fund has an initial investment of 1,000 units and each unit is worth Rs 10. Hence, the total amount with the fund is Rs 10,000. This is referred to as the corpus. Later, some other investors invest Rs 2,000. Now the corpus will be Rs 12,000 (Rs 10,000 + Rs 2,000).
The total amount invested (Rs 12,000) is called the corpus or the total amount of money invested in the fund.
Assets Under Management is the total value of all the investments currently being managed by the fund.
Let's say the corpus is Rs 12,000 but, due to a rise in the price of the shares it has invested in, the value of the units has increased. So the Rs 12,000 invested is now worth Rs 15,000. This figure is referred to as AUM.
This is a mutual fund that invests in stocks of various companies in various sectors.
Equity Linked Saving Schemes are diversified equity mutual funds with a tax benefit under Section 80C of the Income Tax Act.
To avail of the tax benefit, your money must be locked up for at least three years.
A fund that invests in both equity (shares) and debt (fixed return investments) is known as a balanced fund.
These are funds that invest in fixed return investments like bonds. A liquid fund is one that invests in money market instruments, these are fixed return investments of a very short tenure.
A New Fund Offering is the term given to a new mutual fund scheme.
A Systematic Investment Plan refers to periodic investing in a mutual fund. Every month or every three months, the investor will have to commit to putting in a fixed amount. This will go towards the purchase of units.
Let's say that every month you commit to investing, say, Rs 1,000 in your fund. At the end of a year, you would have invested Rs 12,000.
If the NAV on the day you invest in the first month is Rs 20, you will get 50 units.
The next month, the NAV is Rs 25. You will get 40 units.
The following month, the NAV is Rs 18. You will get 55.56 units.
So, after three months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit. This is because, when the NAV is high, you get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs 1,000.
Attention Investors
  • 1: KYC is one time exercise while dealing in securities markets – once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • 2: Prevent Unauthorised transactions in your Trading/Demat Account –> Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL at the end of the day ………. Issued in the interest of investors.
  • 3: Prevent Unauthorised transactions in your account –> Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile / email at the end of the day ………. Issued in the interest of investors.
  • 4: As per the Finance Act, 2015, the Government has decided to levy the Swachh Bharat Cess as proposed in the Union budget, 2015. The cess will be levied at the rate of 0.5% in addition to the 14% service tax.
  • 5:"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."