Mutual Funds – 3

                  Mutual Funds and Options Insurance

Definition of “Redemption”

The mutual fund investors when they need money, only selling weed  & receiving money is called as unit redemption. The investor return back the money within the seven days & it will come to the bank account.

What is New Fund Offer?  Mutual_Fund356x200_1_200_3938

A new mutual fund is called as New Fund Offer. It is also called as NFO. NFO fund is invested in accordance with its portfolio of stocks, bonds, etc.,

Unit Allotment

When you invest in a mutual fund with the amounts we pay, the NAV value of the Unit will be credited to our account. This Unit is called as “Unit Allotment”.

What is the Record Date in Mutual Funds?

Record Date refers to the companies that provide investors with the Mutual Fund Dividend date. On the Record Date the investors have Unit Account then they will receive the dividend.

What is the Adjusted NAV?

In general, mutual fund gives dividend then its NAV value will be reduced. It is called the dividend adjusted NAV. The mutual fund company, making the change its NAV value of the administrative costs is known as the Adjusted NAV.

Definition of “Open-End Fund”

The Open-End Fund schemes in mutual funds, the investment can be taken back at any time. The Open-End Fund Facility is suitable for most people & they want to invest in this fund.

The Definition of “Closed-End Fund”

Mutual fund schemes with a maturity period known as the Closed-End Fund. In Closed-End Fund the investment can not take back within a particular period. It will be charged prior to exiting. During the new fund in the Closed-End Fund’s publications, the NFO is only able to invest.

“Call Option Insurance”

Call Option Insurance is an Index of their trades or in the Stock Trader’s Book of the Future Short Position  foot, & to avoid high-Loss skip they buy “Call Option”. They made ​​the Short Position Insurance (Call Option) have become

“Put Option Insurance”

Put Option Insurance is supposed to be very very important compared with the Call Option Insurance. If Market climb a step would be a thousand reasons, it is always the person does not have a portfolio of companies in the Put Option Insurance would have done.

What is “Fully Paid Shares” and “Partially Paid Shares”?

A company that will make the purchase of a share, the partner pay the full amount is called as Fully Paid Shares. The share price will not be paid fully then it is called Partially Paid Shares.

Forward Margin

The Difference between the spot market price of the commodity market, and the price of the future will be based on the assumption is called as Forward Margin. Forward Margin is added or subtract with the spot price, availability is Forward prices.

Required Rate Of Return- R.R.R

Individual members or company invest in any one scheme or deposit amount for investing a minimum of one year, then the income is referred as Required Rate Of Return (RRR). With this income risk, inflation, the market’s ups, downs included for investors to make decisions. On the basis of the RRR rate, the corporate organizations will decide their new project and business expansion.

 

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