Funds, ETFs & Index Investing
4 terms
Closet Indexing
Funds, ETFs & Index Investing
qualitative
An active fund that holds a portfolio close to its benchmark while charging active management fees.
Test: low active share and low tracking error combined with an expense ratio typical of active management
Consolidated Account Statement
Funds, ETFs & Index Investing
qualitative
A single statement showing an investor's holdings across all mutual funds and demat accounts, linked by PAN.
Test: holdings across all fund houses and depositories are aggregated under one permanent account number
Creation Unit
Funds, ETFs & Index Investing
shares
The large block of ETF units in which new units are created or existing ones redeemed with the fund.
Test: units are created or redeemed only in multiples of the specified block size, in exchange for the underlying basket or cash
Cut-Off Time
Funds, ETFs & Index Investing
qualitative
The deadline by which an application and its funds must reach a fund house to receive a given day's NAV.
Test: both the application and the cleared funds are received before the stated cut-off for that scheme type