Funds, ETFs & Index Investing
4 terms
Passive Investing
Funds, ETFs & Index Investing
qualitative
An approach that seeks to match an index's return rather than to beat it, by holding the index's constituents.
Test: security selection is determined by index rules rather than by judgement, and success is measured by tracking rather than by outperformance
Portfolio Management Service
Funds, ETFs & Index Investing
₹
A SEBI-registered service managing a separate portfolio of securities for a single client, with a high minimum investment.
Test: securities are held in the client's own name or demat account and managed under a discretionary or non-discretionary agreement
Portfolio Overlap
Funds, ETFs & Index Investing
%
The proportion of holdings, by weight, that two funds have in common.
Overlap % = Sum over all common holdings of the minimum of the two funds' weights in that holding
Portfolio Turnover Ratio
Funds, ETFs & Index Investing
%
The proportion of a fund's portfolio replaced over a year, measuring how actively it trades.
Portfolio Turnover = Lesser of Total Purchases or Total Sales / Average Assets Under Management x 100