The absolute return refers to the amount of funds that an investment has
earned. Also referred to as the total return, the absolute return measures the gain or loss experienced by an asset
or portfolio independent of any benchmark or other standard. Returns can be positive or negative and may be considered
uncorrelated to other market activities. This measure looks at the appreciation or depreciation, expressed as a
percentage that an asset, such as a stock or a mutual fund, achieves over a given period of time.
It is the document issued by the mutual funds or the distributor/advisor,
giving details of various transactions and holdings of an investor in schemes of the fund houses.
An accrual fund is a fund that does not pay periodic interest payments.
Instead, interest is added to the principal balance and is either paid at maturity or, at some point,
the fund begins to pay both principal and interest based on the accrued principal and interest to that point.
Actively Managed Fund
A fund that employs a portfolio manager or management team to manage the
funds investments to try to outperform their benchmarks and peer group average. The expense ratio of such funds is
typically higher than that of a passively or inactively managed fund.
Adjusted NAV(Total Return)
When calculating NAV or Net Asset Value for collective investments such
as mutual funds, NAV is the total value of the portfolio less liabilities, calculated on a daily basis.
Adjusted NAV is the NAV calculated as mentioned above but after adjusting it for any possible surplus or
liabilities such as a possible dividend payout. Hence adjusted NAV will reflect the nearer to actual value of
the mutual fund portfolio.
Age Of Fund
The time elapsed since the inception of the fund.
The excess return of the investment relative to the return of the benchmark index is its "alpha".Simply stated, alpha is often considered to represent the value that a portfolio manager
adds or subtracts from a fund portfolios return. A positive alpha of 1.0 means the fund has outperformed
its benchmark index by 1%. Correspondingly, a similar negative alpha would indicate an underperformance of 1%.
For investors, the more positive an alpha is, the better it is.
The Association of Mutual Funds in India (AMFI) is an industry standards organisation in India in the mutual funds sector. It was formed in 1995. Most mutual funds firms in
India are its members. The organisation aims to develop the mutual funds market in India, by improving ethical
and professional standards. AMFI was incorporated on 22 August 1995. As of April 2015, there are 44 members.
It is the record of a Mutual Fund's performance in a year. Under SEBI's guidelines, it is distributed to investors yearly.
Annual return is the return an investment provides over a period of time, expressed as a time-weighted annual percentage. Sources of returns can include dividends, returns of capital and
capital appreciation. In other words, the percentage changes in net asset value of any fund over a horizon of one year,
assuming reinvestment of distribution such as dividend payment and bonuses.