Funds, ETFs & Index Investing
5 terms
Active Investing
Funds, ETFs & Index Investing
qualitative
An approach that selects securities in an attempt to earn more than the index return.
Test: holdings deviate deliberately from the benchmark on the basis of judgement, and success is measured against the benchmark net of fees
Arbitrage Fund
Funds, ETFs & Index Investing
qualitative
An equity-taxed fund that holds offsetting cash and futures positions, earning the basis rather than market returns.
Test: every cash market holding is fully hedged by a short futures position in the same security
Asset Management Company
Funds, ETFs & Index Investing
qualitative
The SEBI-registered entity that manages a mutual fund's schemes and is paid a fee for doing so.
Test: the entity holds a SEBI registration to manage mutual fund schemes on behalf of a trust, and is compensated within the expense ratio
Assets Under Management
Funds, ETFs & Index Investing
₹ crore
The total market value of the investments a fund or manager oversees.
AUM = Number of Units Outstanding x Net Asset Value per Unit
Authorised Participant
Funds, ETFs & Index Investing
qualitative
An institution permitted to create and redeem ETF units directly with the fund, keeping the market price aligned with value.
Test: the entity has an agreement with the fund permitting creation and redemption in creation-unit blocks