Mutual Funds Glossary, Mutual Fund Glossary, mutual funds dictionary, mutual fund dictionary, mutual fund definition, glossary of mutual fund terms, glossary of mutual funds, mutual fund terms

Back End Load
The difference between the NAV of the units of a scheme and the price at which they are redeemed. The difference is charged by the fund.

Balance Maturity Tenure Of A Scheme
In the case of close-ended schemes, the time remaining until the redemption of the scheme.

Balanced Funds
Funds that invest in equity and debt instruments in varying proportions. These funds supplement capital appreciation from equities with a steady return from debt instruments. To a large extent, the returns depend on the performance of the equity portion in the portfolio. There is some flexibility in changing the asset composition between equity and debt and fund managers exploit this to buy the best asset class at each time.

Benchmark
A parameter with which some thing can be compared with. For example, the performance of an equity scheme can be benchmarked against the BSE Sensex. In this case, the BSE Sensex will be known as the benchmark index.

Beta
It shows the sensitivity of the fund to movements measured against the benchmark. A beta of more than 1 indicates an aggressive fund and the value of the fund is likely to rise or fall more than the benchmark. A beta of less than 1 implies a defensive fund that will rise or fall less than the benchmark. A beta of 1 indicates that the fund and the benchmark will react identically.

Bond
A debt instrument issued either by a company, the government or its agencies. It carries a fixed interest and promises return of principal on a specified date.

Bonus
Additional units allotted to investors on the basis of their existing holdings. Basically, there is a split of existing units into more than one unit resulting in the reduction of the NAV per unit.

BSE Index
An index reflecting the stock prices of 30 companies listed on the Bombay Stock Exchange (BSE) which is taken to be representative of the stock market movement.

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