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See Also¿Qué son los 'swaps' y cómo funcionan? ¿Cuál es su finalidad?Swap Definition & How to Calculate GainsHara-Kiri SwapsWhat Are Swaps?Style box is a 3x3 square grid which shows the investment style that the fund manager is following to manage the fund's portfolio.
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Systematic Investment Plan
SIP is an investment strategy wherein an investor needs to invest the same amount of money in a particular mutual fund at every stipulated time period.
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Definition: Swap refers to an exchange of one financial instrument for another between the parties concerned. This exchange takes place at a predetermined time, as specified in the contract.
Description: Swaps are not exchange oriented and are traded over the counter, usually the dealing are oriented through banks. Swaps can be used to hedge risk of various kinds which includes interest rate risk and currency risk. Currency swaps and interest rates swaps are the two most common kinds of swaps traded in the market.
Also See: Hedging, Exchange Rates, Financial Instruments
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Style Box
Style box is a 3x3 square grid which shows the investment style that the fund manager is following to manage the fund's portfolio.
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Systematic Investment Plan
SIP is an investment strategy wherein an investor needs to invest the same amount of money in a particular mutual fund at every stipulated time period.
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Related Definitions
- Arbitrage Fund: Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and derivatives market to generate returns. The returns are dependent on the volatility of the asset. These funds are hybrid in nature as they have the provision of investing a sizeable portion of the portfolio in debt markets.Description: Arbitrage funds are the panacea for low risk taking investors. IBenchmark: A benchmark is an unmanaged group of securities which are considered as a 'benchmark' to measure a fund's/stock's performance. Benchmarks are generally broad market indices like BSE Sensex, CNX Nifty of the Indian stock market with which mutual fund returns are compared.Description: If a fund returned 59% in a particular year, but the benchmark Sensex returned 70%, this infers the fund underBenchmark Government Bond: Benchmark government bond is a debt security issued by the Central government with a residual maturity of 10 years. Description: This bond is backed by sovereign guarantee. Hence investors don’t face any default risk. At the maturity of one benchmark sovereign bond, another one with the same residual maturity is issued by the Central government. The coupon rate is decided by way of aucCategories msid=4006719,type=11 ##)Definition: Categories in the context to financial markets are asset classes where an investor can invest. There are various categories to invest in such as debt instruments, equity instruments and a portfolio of both.Description: Categories in context to mutual funds can be classified into equity fund, debt fund or hybrid funds with equity funds being classified by
- Closed-ended Funds: The unit capital of closed-ended funds is fixed and they sell a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over. Description: This means that new investors cannot enter, nor can the existing investors exit till the term of the scheme ends. However, to provide a platform for investors to exit before the tCommodity Funds: Commodity funds are funds which basically invest in commodities, such as gold, oil or livestock. They also invest in commodity futures and options. Some commodity funds invest in the stocks of companies, like gold funds which invest in the stocks of gold mining companies.Description: As the name suggests, a commodity market covers various kinds of products such as gold, oil and various agri Contingent Deferred Sales Charge: It is the exit fee charged by a no load mutual fund. The CDSC is a reducing charge. It reduces annually and becomes zero upon completion of 4 years form the date of investment.Also See: Entry Load, Exit LoadCredit Rating: Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. It is a rating given to a particular entity based on the credentials and the extent to which the financial statements of the entity are sound, in terms of borrowing and lending that has been done in the past.Description: Usually, is in the form of a detailed report based on the fina
- Custodian: A custodian is responsible for keeping as well as safeguarding the investments and securities on behalf of the owners.Description: A mutual fund company requires an organization or a bank to hold and safe keep records of its assets and investments which have been acquired using the pooled funds of a large number of investors. A custodian helps ensuring the interests of the investors by keepiDebt Funds: Debt funds are mutual funds that invest in fixed income securities like bonds and treasury bills. Gilt fund, monthly income plans (MIPs), short term plans (STPs), liquid funds, and fixed maturity plans (FMPs) are some of the investment options in debt funds. Apart from these categories, debt funds include various funds investing in short term, medium term and long term bonds.Description: Deb
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- European shares lack momentum after debt ceiling dealEuropean stock indexes showed a slight decline in thin trading on Monday, while Wall Street futures were optimistic after a debt ceiling deal was reached between US President Joe Biden and top Republican Kevin McCarthy. However, the deal is expected to bring only short-term relief as worries about inflation and rate increases persist. Asian stocks were mostly up, except for falling Chinese stocks after data showed profits in the industrial sector were slumping, signifying an economic slowdown. US and UK markets are closed for public holidays. Eurozone government bond yields were lower ahead of inflation data due on Wednesday and Thursday.
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