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There are 2 ways in which returns are depicted- Absolute and annualised. Generally, returns for a less than one year period are shown as absolute returns while returns for a period greater than one year are shown as annualised returns or per annum returns.

A mutual fund account statement is a document similar to a bank account statement that indicates the mutual fund units owned by an investor, the cost and current value of the units (in Rs.). One can receive an account at any frequency at any time by email and monthly if it is physical.

There are two ways in which a bond fund earns returns - bond price appreciation and bond coupon receipts. An accrual strategy uses the latter approach to generate returns by predominantly investing in stable interest bearing securities.

There are two ways in which funds are managed. One is the discretionary style while the other is non-discretionary. The former uses the fund manager's judgment to buy and sell securities and is termed as Active Management and the funds are called as Actively Managed Funds.

Actively managed funds aim to generate Alpha which is the excess return generated over and above the benchmark index. This is attributable to the fund manager's skills.

Association of Mutual Funds in India or AMFI represents all Fund Houses as a group in terms of any discussion with SEBI, distributors or investor associations. It also aims to promote best practices among mutual funds. All mutual fund distributors need to be registered with AMFI.

A write-up given to unit-holders containing the yearly record of a mutual funds performance. The report also informs the investor about the funds earnings and operations. Reports are sent out annually.

There are 2 ways in which returns are depicted- Absolute and annualised. Generally, returns for a less than one year period are shown as absolute returns while returns for a period greater than one year are shown as annualised returns.

This is the minimum investment amount for a new investor in a mutual fund scheme.

Invest in stocks and derivatives where the latter is an equal and opposite position. Arbitrage funds thus carry a relatively lower risk being a completely hedged portfolio. They are classified as equity funds for tax purposes as they predominantly invest in equities.

AMFI Registration Number or ARN is issued by AMFI to all mutual fund distributors who are registered with it as financial intermediaries selling mutual funds. It is stamped on the application form so that assets mobilized can be captured to compute brokerage of the distributor. All ARN holders must clear the AMFI / NISM certification test.

Any holding with monetary value such as stocks, bonds, real estate, gold and cash.

Investment strategy that diversifies assets among stocks, bonds, gold and money market instruments to help reduce investment risk. It describes the composition of a funds or an individuals portfolio. For equity funds, this would include a geographic and sector breakdown. For bond funds, it would show the split between government, corporate and other fixed-income securities.

Different types of investments such as stocks, bonds, gold, real estate and cash. Each asset class depicts similar characteristics

A firm that invests the pooled funds of investors in securities, in line with the stated investment objectives. For a fee, the investment company provides diversification, liquidity, and professional management service.

Refers to the cumulative market value of investments managed by a mutual fund.

Maturity of a bond portfolio is a key variable to understand the impact of interest rates or interest rate risk. This is calculated as the average maturity of all bonds weighed by the percentage holding of each in the portfolio. Longer the maturity, higher the interest rate risk.

Disclaimer

Benchmark Investments is a Registered Mutual Fund Distributor.

Benchmark Investments is NOT an advisory firm & NOR an Investments advisor.

The contents herein mentioned are solely for informational and educational purpose only

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The above calculation and illustration of figures are indicative only and not on actual basis.

We Benchmark Investments are not warrant the accuracy or completeness of the information, text, graphics, links or other items contained in this website.

We may make changes to the contents, or to the information described therein, at any time without any notice.

In case of any variance between what has been stated and what is contained in the relevant Act, Rules, Regulations, Policy Statements, etc, is possible and we do update as per our update made.

We neither endorses in any way nor offers any judgment or warranty and accepts no responsibility or liability for the authenticity, availability of any of the goods or services or for any damage, loss or harm, direct or consequential or any violation of local or international laws that may cause infringement by your visiting on these websites as well as on using websites links which are provided on these website.

Please consult your CA / Tax expert for taxation before investing.

The information provided on this website is to help investors in their decision-making process and shall not be considered as a recommendation or solicitation of an investment or investment strategy.

We do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Tax law is subject to continual change, at times on a retroactive basis and may result in incremental taxes, interest or penalties.

There are risks associated with fixed income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.

Stock investments have an element of risk. High-quality stocks may be appropriate for some investments strategies. Ensure that your investment objectives, time horizon and risk tolerance are aligned with stocks before investing, as they can lose value.

Benchmark Investments only acts as a mediator between its clients and the company inviting/accepting deposits, known as Principal Company.

The contents herein above shall not be considered as an invitation or persuasion to trade or invest. We accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

BENCHMARK INVESTMENTS

Benchmark Investments, 6 Sector II Shanti Niketan, Govindpura Bhopal, Bhopal-462023, India. +91-755-4938282/+91-9826310337 hello@benchmarkinvestments.in.
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Mutual fund and other investments are always subject to market risks. Please read all, Scheme Information Documents (SID), Key Information Memorandum (KIM), Addendums(if any) issued there to from time to time and any other related documents or information carefully before investing. Past performance is not indicative or assurance of future performance or returns. Please consider your specific investment requirements before choosing a fund.

For any grievances, investors can contact at: hello@benchmarkinvestments.in,  Tel: +91-755-4938282 / +91-9826310337.
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