Actively Managed Funds - A mutual fund in which individual stocks, bonds
and/or cash investments are bought and sold based on research or other criteria
used by fund managers. Actively managed funds generally try to outperform the
Aggressive Growth Funds - A mutual fund that seek high growth through
aggressive investment strategies. These funds generally buy stocks of emerging
companies that offer the potential for rapid growth.
Annualized Yield - The annual rate of return on an investment.
Annual Report - A financial statement issued each year by a corporation. It
lists assets, liabilities and earnings, as well as some historical information.
Arbitrage Fund - Arbitrage fund is a type of mutual fund that leverages the
price differential in the cash and derivatives market to generate returns. The
returns are dependent on the volatility of the asset. These funds are hybrid in
nature as they have the provision of investing a sizable portion of the
portfolio in debt markets. Arbitrage funds are the panacea for low risk taking
investors. In a situation of high and persistent volatility, arbitrage funds
provide investors a safe avenue to park their hard earned money. These funds
capitalize on the market inefficiencies and generate profits for the investors.
As these funds invest predominantly in equities, their tax treatment is at par
with equity funds.
Asset - A property that has monetary value, including personal possessions
(e.g., houses, cars, jewelry) and financial assets (e.g., savings and
Asset Allocation - The process of deciding how to divide investments among
the three types of asset classes: stocks, bonds and cash equivalents. This
decision is based on tolerance for risk and preferred time horizon, also known
as Asset Mix.
Asset Allocation Fund - A mutual fund that provides investors with a
portfolio of a fixed or variable mix of the three main asset classes - stocks,
bonds and cash equivalents - in a variety of securities.
Asset Class - One of the three major types of investments: stocks, bonds and