Valor de la contraprestación entregada al inicio 242.502
NOTA 21. MEDIO AMBIENTE
GLOSSARY OF SOME CONCEPTS
AMCAMC
The AMC is the corporate entity, which markets and manager and manages a mutual fund The AMC is the corporate entity, which markets and manager and manages a mutual fund scheme and in return receives a management fee from the fund corpus. SEBI specifies that an scheme and in return receives a management fee from the fund corpus. SEBI specifies that an AMC must be separate entity the trust that manages it.
AMC must be separate entity the trust that manages it. NAV
NAV
It is the value of unit of a Mutual Fund scheme and represents its true worth. NAV is arrived at It is the value of unit of a Mutual Fund scheme and represents its true worth. NAV is arrived at by dividing total value of all investment made under the scheme by number of units of the by dividing total value of all investment made under the scheme by number of units of the
scheme. NAV is critical yardstick of the funds performance. scheme. NAV is critical yardstick of the funds performance. UNITS
UNITS
Units in a mutual fund scheme are similar to shares of a joint company. These are always in Units in a mutual fund scheme are similar to shares of a joint company. These are always in denominations of Rs. 10 each
denominations of Rs. 10 each the sum total of all the units constitutes corpus of mutual the sum total of all the units constitutes corpus of mutual fund.fund. SPONSORS
SPONSORS
Sponsor of a mutual fund are those who establish the mutual fund trust and the AMC they Sponsor of a mutual fund are those who establish the mutual fund trust and the AMC they constitute the shareholders of the AMC and receive dividends on profits made by the AMC. constitute the shareholders of the AMC and receive dividends on profits made by the AMC. SEBI rules stipulate that mutual fund trust as well as the AMC must maintain an arms length SEBI rules stipulate that mutual fund trust as well as the AMC must maintain an arms length relationship with the sponsors to avoid any conflict to interests, which may affect the unit relationship with the sponsors to avoid any conflict to interests, which may affect the unit holders.
holders.
INCOME FUND INCOME FUND
These Funds invest largely in fixed income securities like bonds and debentures. Such funds earn These Funds invest largely in fixed income securities like bonds and debentures. Such funds earn returns more regularly than a growth fund but level of returns over longer periods normally lag returns more regularly than a growth fund but level of returns over longer periods normally lag behind those offered by growth funds while returns in such funds may be regular, their scale may behind those offered by growth funds while returns in such funds may be regular, their scale may
fluctuate depending upon the prevalent interest rates and credit quality of the debt securities. fluctuate depending upon the prevalent interest rates and credit quality of the debt securities. GROWTH FUNDS
GROWTH FUNDS
Growth funds predominantly invest in stock market securities and carry risks larger than income Growth funds predominantly invest in stock market securities and carry risks larger than income fun
funds. Since stock markeds. Since stock markets ts trtravel throuavel through gh a a natnaturaural l cyccycle le of of boom and boom and burbursts one sts one shoshoulduld normally stay invested inequity funds for a longer times to earn higher returns.
normally stay invested inequity funds for a longer times to earn higher returns.
Equity funds may earn higher but they also carry larger risks. For risk taking investor equity are Equity funds may earn higher but they also carry larger risks. For risk taking investor equity are best suited.
BALANCED FUNDS BALANCED FUNDS
A balanced fund is the mixture of income fund and growth fund invested partly in equity to A balanced fund is the mixture of income fund and growth fund invested partly in equity to achieve a trade-of between risk and return.
achieve a trade-of between risk and return. CLOSE ENDED
CLOSE ENDED
In a close-ended fund an investor is allowed to subscribe only during the period of the initial In a close-ended fund an investor is allowed to subscribe only during the period of the initial offer. Close-ended funds mature after a specified period.
offer. Close-ended funds mature after a specified period. OPEN ENDED FUNDS
OPEN ENDED FUNDS
Those funds in which investor can invest & withdraw whenever they wish, after the close of Those funds in which investor can invest & withdraw whenever they wish, after the close of initial offer. Withdrawals are allowed at NAV minus a back end load.
initial offer. Withdrawals are allowed at NAV minus a back end load. LOCK IN PERIOD
LOCK IN PERIOD
Time period during which investor can neither redeem nor they transfer their holdings to others. Time period during which investor can neither redeem nor they transfer their holdings to others. Lock in period is imposed to allow fund manager to deploy money for an adequate period of Lock in period is imposed to allow fund manager to deploy money for an adequate period of time to earn a reasonable return premature withdrawals may destabilize the fund & are not time to earn a reasonable return premature withdrawals may destabilize the fund & are not beneficial to the interests of investors.
beneficial to the interests of investors. MANAGEMENT FEES
MANAGEMENT FEES
An AMC that mangers & markets a mutual fund scheme is entitled to a management fee@ 1% to An AMC that mangers & markets a mutual fund scheme is entitled to a management fee@ 1% to 25
25% % of of ththe e tototatal l fufundnds s mamanagnageded, , it it coucould ld be be chachargrged ed to to ththe e scscheheme me irirrerespspecectitive ve of of ththee performance of the scheme.
performance of the scheme. REDEMPTION
REDEMPTION
Disbursement of unit capital on the maturity of that particular scheme to all its existing unit Disbursement of unit capital on the maturity of that particular scheme to all its existing unit holders.
holders.
MARKET PRICE MARKET PRICE
The price at which units of
The price at which units of mutual funds are quoted in stock exchmutual funds are quoted in stock exchange where they are listed.ange where they are listed. REGISTRAR
REGISTRAR
Organization appointed by an AMC to the schemes it is registered, monitored, and regulated by Organization appointed by an AMC to the schemes it is registered, monitored, and regulated by SEBI, it provides required services like system capabilities back up, accepts and processes SEBI, it provides required services like system capabilities back up, accepts and processes inves
investors tors appliapplicationcations s in in inforinforms ms AMC AMC about about amountamounts s receireceived/dived/disbursesbursed d for for subscsubscriptription/ion/ purchase/ redemption it also handles communications with investors, perform data entry services purchase/ redemption it also handles communications with investors, perform data entry services
and dispatches account statements. and dispatches account statements.
P a g e
P a g e | 75| 75
CUSTODAIN CUSTODAIN
Banking organization that keeps in safe custody all the securities & other instruments belonging Banking organization that keeps in safe custody all the securities & other instruments belonging to the fund to insure smooth inflow & outflow of securities. It is also approved regulated and to the fund to insure smooth inflow & outflow of securities. It is also approved regulated and registered with SEBI.
registered with SEBI. EXIT LOAD
EXIT LOAD
Value of deduction from NAV
Value of deduction from NAV on the date when one choose toon the date when one choose to withdraw from a fund, load iswithdraw from a fund, load is
imposed because withdrawals carry transaction cost to AMC it can not be more than 6% of NAV imposed because withdrawals carry transaction cost to AMC it can not be more than 6% of NAV of corpus as prescribed by SEBI many schemes offer redemption facility without exit load.
of corpus as prescribed by SEBI many schemes offer redemption facility without exit load. ENTRY LOAD
ENTRY LOAD
Charge paid by unit holder when he invests an amount in the scheme. Mutual funds incur many Charge paid by unit holder when he invests an amount in the scheme. Mutual funds incur many expenses during an issue, which are charged to the scheme. Such load is called entry load.
expenses during an issue, which are charged to the scheme. Such load is called entry load. LIQUIDITY
LIQUIDITY
Ability of investors to change its unit into cash within minimum time as and when he needs Ability of investors to change its unit into cash within minimum time as and when he needs money.
money.
TRANSPARENCY TRANSPARENCY
Basic feature of mutual funds is transparency, their functioning is very efficient, well monitored Basic feature of mutual funds is transparency, their functioning is very efficient, well monitored & transparent working of AMC is regulated by SEBI it is audited weekly, it has to work under & transparent working of AMC is regulated by SEBI it is audited weekly, it has to work under strict guidelines issued by SEBI, and its NAV is calculated
strict guidelines issued by SEBI, and its NAV is calculated and published daily so and published daily so that there is nothat there is no chance of any default in
BIBLIOGRAPHY
BIBLIOGRAPHY
Books
Books
David F, Swensen. 2005. Unconventional Success. A fundamental Approach to PersonalDavid F, Swensen. 2005. Unconventional Success. A fundamental Approach to Personal Investment Free Press 416
Investment Free Press 416
D.C. Anjaria. Dhaivat Anjaria. 2001 AMFI’s Mutual Fund Testing Programme.D.C. Anjaria. Dhaivat Anjaria. 2001 AMFI’s Mutual Fund Testing Programme.