Glossary of Terms

Benchmark
an index or reference (or a combination of both) to which the performance of a mutual fund is being compared. For instance, equity investments are benchmark...
Fri, 15 Apr, 2016 at 3:36 PM
Custodian
a financial institution or a bank that is responsible for safekeeping the assets of a mutual fund.
Fri, 15 Apr, 2016 at 3:37 PM
Dealing Cut-off
the time until when investors are allowed to subscribe or redeem shares of a mutual fund during a business day. This will determine the applicable NAVPS tha...
Fri, 15 Apr, 2016 at 3:37 PM
Early Redemption / Exit Fee
the fee charged to an investor should the shares of mutual funds be redeemed prior to the fulfillment of a specified holding period.
Thu, 22 Sep, 2016 at 4:53 PM
Expense Ratio
It is a measure of what it costs a company and the management fees to operate a mutual fund. It is calculated by dividing the total fund's operating ...
Thu, 22 Sep, 2016 at 4:53 PM
Front-End Load
the sales charge applied at the time of the initial purchase of shares and is automatically deducted from the original investment amount.
Thu, 22 Sep, 2016 at 4:54 PM
Holding Period
a particular time horizon that must be fulfilled in order to spare investors from paying exit fees once they decide to redeem the shares of a mutual fund ...
Thu, 22 Sep, 2016 at 4:54 PM
Inception Date
the date when the operations of a mutual fund officially started
Thu, 22 Sep, 2016 at 4:55 PM
Management Fee
a charge levied by the fund manager for managing the fund. This fee is typically based on a fixed percentage of total assets under management.
Thu, 22 Sep, 2016 at 4:55 PM
Net Asset Value per Share (NAVPS)
the value at which investors could subscribe or redeem the shares of a mutual fund. NAVPS is computed by dividing net assets (total assets - total liabili...
Thu, 22 Sep, 2016 at 4:57 PM