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

Capital Gains
As per the Income Tax Act, the gains made on sale of securities and certain other assets (including units of mutual funds) are charged to capital gains tax. The gains can be long-term or short-term depending on the period of holding of the asset and are charged to tax at different rates. Gains on mutual fund units held for a period of 12 months or more are long-term gains.

Close-ended schemes
Schemes which have a fixed tenor of maturity.

Corpus
The total amount of money invested by all the investors in a scheme.

Cost Of Churning
The portfolio of a scheme changes from time to time. The rate of change depends on the style of the fund manager (whether he follows the buy-and-hold philosophy or aggressively churns the fund) and on the type of investors (whether the fund constantly receives fresh subscriptions and redemption requests). Such portfolio changes have associated costs of brokerage, custody fees, transaction fees and registration fees which lower the returns. These costs comprise the cost of churning.

Current Load
Load structure applicable currently. Funds keep revising the load structures prospectively from time to time.

Custodian
Agencies which have custody of all the securities purchased by the mutual fund. The service can be provided only by a person who has been granted a certificate of registration to carry on the business of custodian of securities under the SEBI regulations.

Cut-off Time
In respect of all mutual funds regulated by SEBI, fresh subscriptions and redemptions are processed at a particular NAV. Every fund specifies a standarad / uniform cut-off time in respect of fresh subscriptions and redemption of units. All requests received before the cut-off time are processed at that day's NAV and thereafter the request is treated as received on the next day.

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