A-Z Glossary

Balanced Portfolio is a Portfolio allocation technique generally Aim at balancing risks and returns. Such portfolios generally have balanced equity and debt allocation basis the objective and the strategy of the fund.

C for Creating Wealth

Whatever Goals you have set for yourself, Informed Investing in Mutual Funds can help you achieve them effortlessly. While there are Debt Funds which are safe, financial planners and advisors bank on equity funds for long term wealth creation.

D For Demystifying Debt

A Debt Scheme is one that would predominantly invest in fixed income securities like Corporate and Govertmet bonds, Certificate of Deposits, Commercial Papers, etc. Debt Schemes are considered to be relatively safer than equity schemes because Debt scheme invest predominantly in Fixed income securities.

E For Early Start

Life is a race, it is tough to win the race against rising expenses. Unless you have made an Early Start. One of the most effective ways to invest money in the face of climbing expenses is the systematic investment plan (SIP). And the sooner you start, greater the potential rewards. starting early means that the power of compounding starts acting on the money sooner, thereby potentially generating better returns.

F For Fixed Maturity Plan

when it comes to protecting investments from interest rate fluctuations, Fixed maturity plans (PMP) can be a good choice for investors. The Funds invest in fixed income securities to reach interest rate risks. FMP invest in fixed income securities and Debt instruments with the same maturity period as the tenure of the scheme.

G For Growth Potential

An Equity investment is buying and holding of stock on stock market by individual and firms in anticipation of income from dividends and capital gains, as the value of the stock rises.

H For Hybrid Power

Hybrid Funds Invest in both Equity and Debt markets, seeking to give you the Dual Advantage of stability and long-term growth potential.

I For Inflation Adjusted Return

How inflation can widen the Gap between your aspirations and reality. To ensure that your desired financial goals are not affected by inflation, you can consider a host of investment options.one of them is mutual fund

J For Joint Account Holding

Description

K For Keep Track of your Portfolio

Keeping track of your portfolio is very important, ABSL provides with services of instant account statement, NAV alerts, Portfolio valuation with missed call.

L For Liquid Funds

Liquid Funds generally invest in Debt and money market securities with short term maturity, benefits - Potential gain with lower risk, High Liquidity, Taxation benefit.

M For Monthly Income Plans

A Debt oriented mutual fund scheme that endeavours to pay out regular income in the form of dividends, MIPs offer better post tax returns than fixed deposits, post office monthly income schemes and Fixed maturity plans.

N For Net Asset Value

A Net Asset Value (NAV) is the sum total of the market value of all the assets of the portfolio including cash, less the value of liabilities, divided by the total number of units outstanding. It's basically a fair value of a single share of a fund.

O For Opportunity Cost

It is cost of an alternative that must be foregone in order to pursue a certain action. Simply put, it is the benefits you could have received by taking an alternative action. It is the difference between the return of the lucrative option and the returns gained from the chosen option.

P For Parameters for Evaluating Performances

Net Asset Value (NAV), Benchmark, Absolute returns, turnover ratios.

Q For Quality of an Innovative Portfolio

A quality portfolio is determined by your investment decision. This decision should be value-based as the price you pay is the biggest determinant of your long-term Return On Investments. Valuation-based investment decisions can be implemented in your asset allocation and individual investments.

R For Return on Investment

Return On Investment (ROI) is the benefit to an investor from a particular venture. A high ROI translates into an investment being favourable and vice-versa. As a monetary performance measure, ROI is used to evaluate the Viability of an investment from a number of different ventures.

S For Systematic Investment Plan

Regular investments with the fixed amount in mutual funds, benefits -- Disciplined approach, Rupee cost averaging, power of compounding.

T For Tax Efficient investments

It is a measure of how much an investment's return is left over after taxes are paid. It attempts to minimise tax laibility when multiple financial decisions are offered.

U For Ultra Short Term Schemes

Ultra short term schemes are those mutual fund schemes that seeks to invest in debt and money market securities, mostly liquid in nature with short term maturity of around one year and with relatively low level of interest rate risk. This usually has less price fluctuations.

V For Volatility

Volatility is a statistical measure of the dispersion of returns for a given security or market index.It is always calculated for a specific period, taking historical data as a base. In simple terms, it is the uncertainty of risk, of the change in value of an investment.

W For Wealth creation

Wealth creation aims to grow your money over a longer period of time through equity/gold investments and is available in a range of conservative to aggressive options

X For Extended Internal Rate of Return

Internal Rate of Return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. IRR does not solve one problem and that is when the payments are at Irregular interval. In that case we use XIRR. So in a Spreadsheet we put the date and the value both signifies how much an investment usually offer and XIRR is a more powerful function in Excel to calculate annualized yield for a schedule of cash flows occurring at irregular periods.

Y For Yield to Maturity

Yield to Maturity (YTM) is the total return that an investor stands to receive if all scheduled payments are made on time and the bond is held until maturity. Although considered to be a long-term bond yield, YTM is expressed as an annual rate.

Z For Zero Folio Account

Zero Folio account is an investment ready account that doesn’t require you to make an initial investment to generate a folio number, just like a bank account with zero balance facility. Benefits of opening a Zero Folio account : You are always investment ready, No initial investment required, Your funds are not blocked.