Funds, ETFs & Index Investing
7 terms
IDCW Option
Funds, ETFs & Index Investing
₹
The plan option under which a fund periodically distributes part of the NAV to unit holders as income distribution cum capital withdrawal.
Post-Payout NAV = Pre-Payout NAV - Amount Distributed per Unit
iNAV
Funds, ETFs & Index Investing
₹
The indicative net asset value of an ETF, computed and published continuously through the trading day.
iNAV = (Live Value of the Underlying Basket + Cash Component) / Units Outstanding
Index
Funds, ETFs & Index Investing
index points
A rule-based measure of the value of a defined group of securities, used to represent a market or segment.
Index Value = (Current Free-Float Market Capitalisation of Constituents / Base Market Capitalisation) x Base Index Value
Index Fund
Funds, ETFs & Index Investing
qualitative
A mutual fund that seeks to replicate an index's holdings and return rather than to beat it.
Test: the fund holds constituents in index proportions and measures itself by tracking difference rather than by outperformance
Index Rebalancing
Funds, ETFs & Index Investing
qualitative
The periodic revision of an index's constituents and weights according to its published rules.
Test: constituents are reviewed on a stated schedule against eligibility criteria, with additions and deletions announced in advance
Index Weighting
Funds, ETFs & Index Investing
%
The rule determining how much of an index each constituent represents.
Free-Float Weight = Constituent's Free-Float Market Capitalisation / Sum of All Constituents' Free-Float Market Capitalisations
International Fund
Funds, ETFs & Index Investing
%
A fund giving Indian investors exposure to securities listed outside India.
Return in Rupees = (1 + Foreign Market Return) x (1 + Currency Change) - 1