Company Profile
Glossary
 
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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Balanced fund
A mutual fund scheme with an investment objective of both long-term growth and income, through investment in stocks and bonds. Generally 60% is invested in stocks and 40% in bonds , in order to provide access to relative safety of fixed income securities and the growth potential of equities.

Bear market
A period of time during which securities prices are falling in the stock market.

Benchmark
A standard used for comparison. Usually to provide a point of reference for evaluating a fund’s performance. The common benchmarks for diversified equity funds are the BSE Sensex, S&P CNX 500 or Nifty.

Beta
A measure of a fund’s volatility in relation to the stock market, as measured by a stated index. By definition, the beta of the stated index is 1; a fund with a higher beta has been more volatile than index, and a fund with a lower beta has been less volatile. Based on past historical records, a beta higher than 1.0 indicates that when the index rises, the stock will rise to a greater extent than the index; likewise, when the index falls, the stock will fall to a greater extent. A beta lower than 1.0, indicates that the stock will usually change to a lesser extent than the index. The higher the beta, the greater the investment risk.

Blue chip
Stock of a nationally known company that has a long record of profit, growth, and dividend payment, and a reputation for quality management, products, and services.  

Bond
A debt security or IOU issued by a government entity or corporation, which generally pays a stated rate of interest, and plans to return the principal amount of the loan on the maturity date. Unlike stockholders, bondholders do not have corporate ownership privileges.

Broker
A broker is a licensed person authorised to receive commissions. Brokers are always affiliated with a brokerage company or broker-dealer network. A broker is basically a salesman who sells stocks, bonds, or mutual funds.

Bull market
A distinctive time period, during which the prices of securities are rising, usually characterised by high trading volumes.

Business Day
A Business Day is any day other than a Saturday, a Sunday or a day on which banks are not required or obligated by law or executive order to remain closed including the occasions when the functioning of the Banks/ RBI is affected due to a strike call made by a Recognised Union/ Management in any part of the country or those days on which normal business can not be conducted due to natural calamities or any other events.

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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