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Knowledge Centre

Empowering customers with knowledge

We intend to redefine financial services, which would help different individuals meet their financial goals, with following:

  • Financial Planning
  • Equity
  • Debt
  • Mutual Fund
  • Insurance
  • Commodities
  • Research & More
  • Financial Terms
Q. What is financial planning?
Ans. Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for retirement.
Financial Planning is a common sense disciplined approach to managing your finances to reach life goals. It cannot change your situation overnight; it is a life long process
Q. What are the benefits of financial planning?
Ans. Financial Planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly.
By viewing each financial decision as part of the whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track.
Q. What is the financial planning process?
Ans. The Financial Planning Process consists of six steps that help you take a 'big picture' look at where you are currently. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.
The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.
Q. How to make financial planning work for you?
Ans. You are the focus of the Financial Planning process. As such, the results you get from working with a Financial Planner are as much your responsibility as they are those of the Planner. To achieve the best results from your Financial Planning engagement, you will need to be prepared to avoid some of the common mistakes by considering the following advice:
  • Set measurable goals
    Set specific targets of what you want to achieve and when you want to achieve results. For example, instead of saying you want to be 'comfortable' when you retire or that you want your children to attend 'good' schools, you need to quantify what 'comfortable' and 'good' mean so that you'll know when you've reached your goals.
  • Understand the effect of each financial decision
    Each financial decision you make can affect several other areas of your life. For example, an investment decision may have tax consequences that are harmful to your estate plans. Or a decision about your child's education may affect when and how you meet your retirement goals. Remember that all of your financial decisions are interrelated.
  • Re-evaluate your financial situation periodically
    Financial Planning is a dynamic process. Your financial goals may change over the years due to changes in your lifestyle or circumstances, such as an inheritance, marriage, birth, house purchase or change of job status. Revisit and revise your Financial Plan as time goes by to reflect these changes so that you stay on track with your long-term goals.
  • Start planning as soon as you can
    Don't delay your Financial Planning. People, who save or invest small amounts of money early, and often, tend to do better than those who wait until later in life. Similarly, by developing good Financial Planning habits such as saving, budgeting, investing and regularly reviewing your finances early in life, you will be better prepared to meet life changes and handle emergencies.
  • Be realistic in your expectations
    Financial Planning is a common sense disciplined approach to managing your finances to reach life goals. It cannot change your situation overnight; it is a life long process. Remember that events beyond your control such as inflation or changes in the stock market or interest rates will affect your Financial Planning results.
Q. What are the common mistakes people make in their financial planning approach?
Ans. The following are some of the common mistakes made by people in their approach towards financial planning
  • Not setting measurable goals.
  • Making financial decisions without understanding its affect on other financial issues. (in other words, making financial decisions with emotions)
  • Confusing Financial Planning with investing.
  • Neglecting to re-evaluate their financial plan periodically.
  • Thinking that Financial Planning is only for the wealthy.
  • Thinking that financial planning is only when they get older.
  • Thinking that financial planning is the same as retirement planning.
  • Waiting until a money crisis to begin financial planning.
  • Expecting unrealistic returns on investments.
  • Thinking that using a financial planner means losing control.
  • Believing that financial planning is primarily tax planning.
Q. What are the financial planning services that you offer?
Ans. Financial Planning services offered by www.investmentz.com will help you achieve your longterm life goals. It is customized to suit your specific individual needs.

Our financial planning process has 3 steps:
  • Building the cash flow
    In this module, we get data on your income, expenses, assets and liabilities to build your cash flow position. Net result of all of above will be your cash flow analysis which will reflect year on year basis your income, expense, commitments, maturities and cash surplus or deficit position. This analysis will be directly impacted as you keep freezing your financial goals.
  • Risk profile and asset allocation
    In this module we scientifically understand your risk profile using a proprietary model as all your goals should be aligned with your risk taking ability. Based on your risk profile, we construct an asset allocation plan for you.
    At regular intervals, your asset allocation plan is reviewed and rebalanced, due to market conditions in order to ensure that it remains at a steady state.
  • Goal planning
    In this module we help you define your life goals. Examples of goals are:

    Child education
    Child marriage
    Buying a house / land / property
    Going for a family vacation
    Buying a car / vehicle
    Buying gold or any other asset
    Starting a new business venture
    Retirement Planning
    Finally, we will build a cash flow and investment plan for each of your goals, based on all the above data.
    Based on the investment plan for each goal, we help you act on the plan by helping you start the investment process and formalities.
    Our research recommends the various assets and products (e.g: model portfolios of equity stocks, mutual funds, debt instruments, fixed deposits, bonds, debentures, insurance etc) required in your investment plan for each goal.
    We will help you complete all your documentation formalities and execute your investment plan.
    We will track and monitor your investment portfolio constantly and at regular intervals we will give you advice on portfolio rebalancing, to bring your portfolio in line with your original asset allocation plan.
Q. I would like to avail of your financial planning services. Whom do I contact?
Ans. Please click the link below to contact us right now.
Q. What are equities?
Ans. Equity is a part of a company, also known as stock or share. When you buy shares of a company, you basically own a part of that company. A company's stockholders or shareholders all have equity in the company, or own a fractional portion of the whole company. They buy the shares because they expect to profit by rising share prices when the company profits. There are two basic types of shares that any company issues: equity shares and preference shares.

A. Equity shares

Both public and private corporations issue equity shares. Equity shareholders are the owners of a company and initially provide the equity capital to start the business. Equity share ownership in a public company offers many benefits to investors. The following are some of its main advantages:
  • Capital appreciation
  • Dividends
  • Voting privileges
  • Liquidity - shares can easily be bought or sold
  • Dividend tax credit and capital gains tax
There are also a few drawbacks of owning equity shares. Although part owners of the business, common shareholders are in a weaker position when compared to senior creditors, bondholders and preferred shareholders have prior claims on the earnings and assets of a company. While interest payments are guaranteed to bond holders, dividends are payable to shareholders at the discretion of the directors of a company.

As equity shareholders are part owners of the company, they have to share the rewards as well as the risk that the company faces at any point in time.

B. Preference shares

A preference share is a type of share capital that generally enables shareholders to fixed dividends ahead of the company's common shares and to a stated rupee value per share in the event of liquidation. Typically, the preferred shareholder occupies a position between that of a company's creditors and its common shareholders.

As preferred shares have characteristics of both debt and equity, they provide a link between the bond and common equity sections of a portfolio. One shortcoming of preferred shares is that many are non-voting. However, after a specified number of preferred dividends are withheld, voting rights are usually assigned to preferred shareholders. In India, very few companies offer preference shares
Q. Why invest in equities?
Ans. Investing in shares offers many benefits over other asset classes.

A. Returns which beat inflation:

Stocks can help you build long-term growth into your overall financial plan. Over a longer period of time, shares can produce significant capital gains through price appreciation. Some companies also issue free or bonus shares to their shareholders as another way of passing on company profits or increases in their net worth. Stocks, as an asset class, have outperformed most other type of investments over longer periods of time. Data from BSE sensex – inception date from 1978 till 2014, a period of 36 years shows that on an average equities have given an annual return of 15% CAGR compounded annual growth rate. During the same period CPI retail inflation in India averaged 8% p.a. This data shows that in the long-term equities have given returns that are almost 2 times that of inflation

In addition, stocks pay dividend income, which has the potential to grow overtime. Shares that pay regular dividends are called income stocks. These companies have capital appreciation potential and when dividends are reinvested into additional shares, there is also the potential to compound investment returns.

B. Choice:

There are over 5000 companies listed on the stock market in which you can buy shares, so there are plenty to choose from to match your investment needs.

C. Ownership:

Stock represents an ownership or equity stake in a corporation. If you are a stockholder, you own a proportionate share in the company's assets. That means you gain a part of the ownership of the company.

D. Liquidity:

Stocks have a high level of liquidity. You can sell your shares and receive the money in 2-3 working days.

E. Tax Benefits: (as per current tax laws)

The dividend income generated on shares is completely tax-free. Long-term capital gains arising on equity investment is tax- free. That means, if you invest in a company and keep the shares for 12 or more months, you don't need to pay any tax on income you earn on selling the shares after 12 months. Short-term capital gains tax on shares is also just 10%, while investment in other asset classes attracts short-term capital gains tax of 30%.
Q. What are the frequently used terms when investing in equities?
A. Bid:

This represents the highest price a prospective buyer is willing to pay for a stock.

B. Offer (Ask):

This represents the lowest price a prospective seller is willing to accept for a stock.

C. Market order:

An order to buy or sell a specified number of shares at the best available price at the time the order is received on the exchange floor. All orders not bearing a specific price are usually considered "at the market" which could mean paying the "offer" when buying or accepting the "bid" when selling.

D. Limit Order:

An order in which you specify the price at which you would like to buy or sell.

E. Stop Buy and Stop Loss Orders:

Orders to buy or sell that are placed above or below the current market price, which become active orders when the price of the stock rises or falls to the specified price. These orders may be placed to execute at the market, at a specified limit or within a specified price range.

A stop buy order can be used to protect against losses in a short sale, whereas a stop loss order can be used to protect a paper profit or to limit a possible loss when you already own the shares.

Not all stock exchanges will accept these orders. Stop buy and stop loss orders are risky because they may not necessarily fill at the specified price but at the best possible price available at that time.

F. Market capitalization

This is a frequently used term and it denotes the size of the floating stock available Market = total outstanding shares of the company X current market price.
For instance, a company has 20 million outstanding shares and the current market price of each share is Rs100. Market capitalization of this company will be 200,00,000 x 100=Rs 200 crores.

Stocks of companies can be classified into 3 types based on their market capitalizatio n. Those with a market cap of Rs 10,000 crores or more are large cap stocks. Those with a market cap between Rs 2000 crores and 10000 crores are mid cap stocks and those less than Rs 2000 crores market cap are small cap stocks.

This definition is modified from time to time by the stock exchanges (NSE & BSE) and used to construct the various indices.

Generally, large cap stocks are more liquid, actively traded than mid and small cap stocks. This definition is useful while constructing and tracking stock portfolios.

G. Types of stocks:

Generally, there are 2 types of stocks available:

Value stocks: A stock that trades at a lower price relative to its fundamentals (i.e. dividends, earnings, sales, etc.)is defined as a value stock. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-toearnings ratio.

Growth stocks: Shares in a company whose earnings are expected to grow at an aboveaverage rate relative to the market. A growth stock is often overvalued. Common characteristics of such stocks include a low dividend yield, high price-to-book ratio and/or high price-to-earnings ratio.

We will discuss more about these ratios in the "Experienced investor" section
Q. Can you explain which are the various institutions in the stock market?
Ans. The detailed role played by the various institutions in the stock market is given below

A. SEBI (Securities and exchange board of India)

SEBI is the main regulator that governs the capital market in India. SEBI is part of the various organizations under the Ministry of Finance (Government of India) (please click the link below for more detailed information)

B. Stock exchange

There are many stock exchanges in India, however for the purpose of this discussion, we are limiting ourselves to the top 2 stock exchanges in India.
Bombay stock exchange (BSE) (please click the link below for more detailed information)
http://www.bseindia.com/static/about/introduction.aspx?expandable=0 National stock exchange (NSE) (please click the link below for more detailed information)
Stock exchanges are the platform where shares are bought or sold. They are regulated by SEBI

C. Depository

Depositories are the platform where the shares are held in electronic (paperless) OR more popularly known as DEMAT form (demat means dematerialized)
They are regulated by SEBI
There are 2 major depositories in India
Central depository services (please click the link below for more detailed information)
National depository services (please click the link below for more detailed information)

D. Broker

Brokers are registered members of the stock exchange and investors can buy or sell shares through brokers. Brokers are regulated by the stock exchange and SEBI Brokers can be either individual brokers or corporate broking firms
We at www.investmentz.com are a part of the Asit C.Mehta investment intermediated ltd. one of the earliest registered corporate broking firms, started in 1986 (please click the link below for more detailed information)

E. Clearing corporation

The clearing corporation clears and settles trades in equities traded on the stock exchanges. When a buy order in an exchange matches with a sell order, a trade is generated. The central counter party steps in between the buyer and the seller and acts as a buyer to every seller and a seller to every buyer guaranteeing settlement of trades.
Clearing corporations maintain funds for guaranteeing trades, settlement and in case a buyer or a seller defaults.
They are regulated by SEBI
There are 3 qualified central counter parties (QCCPs) in the Indian securities market.
National Securities Clearing Corporation Ltd (NSCCL) (please click the link below for more detailed information)
Indian Clearing Corporation Ltd (ICCL) (please click the link below for more detailed information)
MCX-SX Clearing Corporation Ltd (MCX-SXCCL) (please click the link below for more detailed information)
Q. This was interesting to know, please tell me how do I buy and sell shares or stocks?
Ans. It is really quite simple. All you have to do is to follow the 3 steps process given below:

A. Open a demat account

You can open a zero balance demat account with us. A few KYC (know your customer) documents would be required, which will be told to you at the time of account opening.

B. Open a trading account

You can open a zero balance trading account with us. A few KYC (know your customer) documents would be required, which will be told to you at the time of account opening.

C. Linking your existing bank account

Your current bank account will be linked to the trading and demat account to ensure that there is a smooth fund flow to you account when you buy or sell shares

You can call or email us at www.investmentz.com to complete these initial formalities and then you can start buying and selling shares over the internet or through the phone.
Q. How do you ensure the security and privacy of my trading and demat account?
Ans. Only you will know your Login ID and Password, as these are stored in encrypted form with us.
Q. How will I get research advice on which shares to buy and sell?
Ans. We at www.investmentz.com offer you a range of research services.

Our research services are categorized as:

A. Informational products
B. Recommendation products

Please click the link below to know more and to register for our research and subscription services

Q. I want to start investing in equity, whom should I contact?
Ans. Please click the link below and call or email us as per the details given

Q. What is "debt"?
Ans. An amount of money borrowed by one party from another. Many companies use debt as a method for making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.
Q. Which are the various debt products available?
Ans. We have given a list of debt products available in the Indian market for the individual investor.

A. Fixed deposits / Corporate bonds / Debentures:

This is the most popular debt product category. It is a deposit for a specific time period with a fixed rate of interest, which will be paid along with the principal at maturity.

Bank and company fixed deposits are popular with Indian investors. Rate of interest may be fixed or floating (linked to a benchmark rate). Tenure could be from 1 week to 10 years.

Generally, the higher the risk of the bank or the company, the higher rate of interest it will offer and vice versa. Example: Strong nationalized banks offer lower interest rates than private companies on fixed deposits.

Please click the link below to know more about the fixed deposits/corporate bonds/debentures on offer



Debentures carry a fixed rate of interest and a fixed tenure. They can be secured or unsecured. They may or may not be rated.

Bonds carry a fixed or floating rate of interest, which can be taxable or tax-free. There are many public sector companies owned by the Govt. of India, which offer tax-free bonds from time to time.

These tax-free bonds are popular with high net worth (HNI) investors who are in the 30% income tax slab, as in these cases their pre-tax return is attractive and the profile of the issuing companies is considered to be safe, as they are owned by the Govt. of India.

Please click the link below to know more about tax-free bonds on offer.


To assess the risk profile of the borrower, a credit rating is assigned by the credit rating agency. Leading credit rating agencies in India are CRISIL, ICRA & CARE.

An investor should check the credit rating and interest rate of the fixed deposit, corporate bond or debenture before investing.

Generally the highest credit rating is AAA (pronounced as Triple A) and as the credit rating starts falling (from low risk to high risk) the rate of interest offered starts increasing.

B. Government securities:

They are issued by the Reserve bank of India (RBI) on behalf of the central and the various state governments. They carry a fixed rate of interest, payable semi-annually and a fixed tenure. The tenure can range from 1 year to 30 years. The principal amount is repaid at maturity date.

Securities below the tenure of 1 year are called as Treasury bills (T-bills). They are issued at a discount to the face value and redeemed at face value.

They are considered to be the safest amongst all debt products, as the central and state governments issue them.

C. Debt mutual funds:

These mutual fund schemes invest in government securities, corporate bonds (fixed rate and floating rate) and money market instruments. They seek to provide a steady return with low risk.

They are ideal for investors with low risk profile. They offer high liquidity and returns that are in line with those provided by corporate bonds. Returns are not guaranteed. They enjoy tax benefits. If debt funds are sold after 3 years, then the applicable long-term capital gains tax is 20.90% with indexation benefit. (For FY 2015-16)

Please click the link below to know more about the debt mutual funds on offer

Q. I want to start investing in debt, whom should I contact?
Ans. Please click the link below and call or email us as per the details given

Q. What is a "Mutual Fund"?
Ans. A Mutual fund is a product wherein investors pool in resources (money) to the asset management company, which is used to buy securities in accordance with objectives as disclosed in offer document. Investors are issued units, in accordance with the money they have invested.

Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unitholders.

The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public.
Q. What are the benefits of investing in mutual funds?
Beat Inflation:

Mutual Funds help investors generate better inflation-adjusted returns, without spending a lot of time and energy on it.While most people consider letting their savings 'grow' in a bank, they don't consider that inflation may be nibbling away its value.

Suppose you have Rs. 100 as savings in your bank today.Your bank offers 7% interest per annum for a 1 year period in a fixed deposit and there is a tax on interest income, if you are in the 20% income tax slab, then you will effectively earn Rs 7 – 1.4 = Rs 5.6 as post-tax interest income, so by next year you will have Rs.105.60 in your bank. your post tax return is 5.6% for 1 year

However, inflation that year rose by 6.5 %. Hence your post-tax return of 5.6% is less than the inflation of 6.5% Hence your real return = 5.6% - 6.5 % = - 0.9% (minus 0.9%)

Real return = actual post-tax return – inflation

Hence your real return is negative in this case.

Mutual Funds provide an ideal investment option to place your savings for a long-term inflation adjusted growth so that your savings grow at a positive real rate of return.

Expert Fund Managers:

Backed by a dedicated research team, investors are provided with the services of an experienced fund manager who handles the financial decisions based on the performance and prospects available in the market to achieve the objectives of the mutual fund scheme.


Mutual funds are an ideal investment option when you are looking at convenience and timesaving opportunity. With low investment amount alternatives, the ability to buy or sell them on any business day and a multitude of choices based on an individual's goal and investment need, investors are free to pursue their course of life while their investments earn for them.

Low Cost:

Probably the biggest advantage for any investor is the low cost of investment that mutual funds offer.

Mutual funds, on the other hand, are relatively less expensive. The benefit of scale in brokerage and fees translates to lower costs for investors. One can start with as low as Rs. 500 and get the advantage of long-term equity investment.


Mutual funds help mitigate risks to a large extent by distributing your investment across a diverse range of stocks and sectors. Mutual funds offer a great investment opportunity to investors who have a limited investment capital.


Investors have the advantage of getting their money back in 3 working days, in case of openended equity schemes based on the Net Asset Value (NAV) at that time. In case your investment is close-ended, it can be traded in the stock exchange, as offered by some schemes.

Higher Return Potential:

Based on long-term time frame, mutual funds have the potential to generate a higher returns, as you can invest on a diverse range of sectors and industries.

Safety & Transparency:

Fund managers provide regular portfolio information about the current value of the investment, stocks and bonds in the portfolio along with their strategy and outlook, to give a clear picture of how your investments are doing.

Moreover, since every mutual fund is regulated by SEBI, you can be assured that your investments are managed in a disciplined and regulated manner and are in safe hands.

Every form of investment involves some risk. However, skilful management, selection of fundamentally sound securities and diversification can help reduce the risk, while increasing the chances of higher returns over time.
Q. What is the history of Mutual Funds in India and role of SEBI in mutual funds industry?
Ans. Unit Trust of India was the first mutual fund set up in India in the year 1963. In early 1990s, Government allowed public sector banks and institutions to set up mutual funds.

In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The objectives of SEBI are – to protect the interest of investors in securities and to promote the development of and to regulate the securities market.

As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market. The regulations were fully revised in 1996 and have been amended thereafter from time to time. SEBI has also issued guidelines to the mutual funds from time to time to protect the interests of investors.

All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. There is no distinction in regulatory requirements for these mutual funds and all are subject to monitoring and inspections by SEBI. The risks associated with the schemes launched by the mutual funds sponsored by these entities are of similar type.
Q. How is a Mutual Fund set up?
Ans. A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset management company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unitholders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.

SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated with the sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds are required to be registered with SEBI before they launch any scheme.
Q. What is Net Asset Value (NAV) of a scheme?
Ans. The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV).

Mutual funds invest the money collected from the investors in securities markets. In simple words, Net Asset Value is the market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day to day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. For example, if the market value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual funds on a regular basis - daily or weekly - depending on the type of scheme.
Q. What are the different types of mutual fund schemes?
Ans. Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.

Open-ended Fund/ Scheme:

An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme:

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme:

The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

Income / Debt Oriented Scheme:

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

Balanced Fund:

The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund:

These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Gilt Fund:

These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.

Index Funds:

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.
Q. What are sector specific funds/schemes?
Ans. These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.
Q. What are Tax Saving Schemes?
Ans. These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.
Q. What is a Fund of Funds (FoF) scheme?
Ans. A scheme that invests primarily in other schemes of the same mutual fund or other mutual funds is known as a FoF scheme. An FoF scheme enables the investors to achieve greater diversification through one scheme. It spreads risks across a greater universe.
Q. What is a Load or no-load Fund?
Ans. A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well as exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and those who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit. The investors should take the loads into consideration while making investment as these affect their yields/returns. However, the investors should also consider the performance track record and service standards of the mutual fund which are more important. Efficient funds may give higher returns in spite of loads.

A no-load fund is one that does not charge for entry or exit. It means the investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.
Q. Can a mutual fund impose fresh load or increase the load beyond the level mentioned in the offer documents?
Ans. Mutual funds cannot increase the load beyond the level mentioned in the offer document. Any change in the load will be applicable only to prospective investments and not to the original investments. In case of imposition of fresh loads or increase in existing loads, the mutual funds are required to amend their offer documents so that the new investors are aware of loads at the time of investments.
Q. What is a sales or repurchase/redemption price?
Ans. The price or NAV a unitholder is charged while investing in an open-ended scheme is called sales price. It may include sales load, if applicable.

Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases or redeems its units from the unitholders. It may include exit load, if applicable.
Q. What is an assured return scheme?
Ans. Assured return schemes are those schemes that assure a specific return to the unitholders irrespective of performance of the scheme.

A scheme cannot promise returns unless such returns are fully guaranteed by the sponsor or AMC and this is required to be disclosed in the offer document.

Investors should carefully read the offer document whether return is assured for the entire period of the scheme or only for a certain period. Some schemes assure returns one year at a time and they review and change it at the beginning of the next year.
Q. Can a mutual fund change the asset allocation while deploying funds of investors?
Ans. Considering the market trends, any prudent fund manager can change the asset allocation i.e. he can invest higher or lower percentage of the fund in equity or debt instruments compared to what is disclosed in the offer document. It can be done on a short term basis on defensive considerations i.e. to protect the NAV. Hence the fund managers are allowed certain flexibility in altering the asset allocation considering the interest of the investors. In case the mutual fund wants to change the asset allocation on a permanent basis, they are required to inform the unitholders and giving them option to exit the scheme at prevailing NAV without any load.
Q. How do I invest in a scheme of a mutual fund?
Ans. Please call us or send email as per the details given in the link here.

Please click the link below

Q. What are the services you provide to help me invest my money into Mutual Funds?
Ans. We will help you to complete the KYC (know your customer) documentation process, draw up a financial plan for you, which is based on your income, expenses, assets, liabilities and financial goals.

We will then recommend suitable schemes (as per our research process) where you can invest in. We will take care of the documentation formalities and track your portfolio and give you advice on periodic portfolio rebalancing, which will help you achieve your financial goals.

Insurance is a social device for spreading the chance of financial loss among a large number of people. By purchasing insurance, a "person" shares risk with a group of others, thereby reducing the individual potential for disastrous financial consequences. Transacting insurance includes soliciting insurance, collecting premiums and handling claims.

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Q. What is a commodity market?
Ans. A commodity market facilitates trading in various commodities. It may be a spot or a derivatives market. In spot market, commodities are bought and sold for immediate delivery, whereas in derivatives market, various financial instruments based on commodities are traded. These financial instruments such as 'futures' are traded in exchanges.
Q. Who regulates the commodity market?
Ans. SEBI regulates the commodity market.
Q. Why invest in commodities?
Ans. Speculation:

Trading in commodities is done with a view to make profits.

Transparency and Fair Price Discovery:

Trading in commodity futures is transparent and a process of fair price discovery is ensured through large-scale participation. The large participation also reflects views and expectations of a wider section of people concerned with that commodity. Online Platform: Producers, traders and processors, exporters/importers get an online platform through MCX / NCDEX for price risk management.


It provides a platform for producers to hedge their positions according to their exposure in physical commodity.

No Insider Trading:

Dealing in commodities is free from the evils of insider trading. Besides, there are no company specific risks as those seen in stock markets.

Simple Economics:

Commodity trading is about the simple economics of demand and supply. More the demand for a commodity higher is its price and vice versa.

Trade on Low Margin:

Commodity Futures traders are required to deposit low margins, roughly 5 to 10% of the total value of the contract, much lower compared to other asset classes. The low margin, which again varies across exchanges and commodities, facilitates the taking of large positions at lower capital.

Seasonality Patterns:

Quite often provide clue to both short and long term players.

No Counter party Risk:

Much like the stock exchanges in the equity market, Commodity Futures market have Clearing Houses, which guarantee that the terms of the contracts are fulfilled, thereby eliminating the counter party risk.

Wide Participation:

The emergence of online trading would enable growth in the commodity market, much akin to the one seen in the equity market. It would also ensure bringing the market closer to both, the user and the trader.

Evolved Pricing:

The rise in participation would decrease the risk of cartelisation, ensuring a holistic view on the commodity. Hence, pricing would be more practical and less irrational leading to
Q. Which commodities I can trade?
Ans. The following commodities are actively traded in these two Exchanges:

Multi Commodity Exchange (MCX)

Bullion: Gold and Silver

Metals: Aluminum, Copper, Zinc etc.

Oil and Oil Seed: Refined Soy Oil, Soy Bean etc.

Energy: Brent crude oil, Crude oil, etc.

Other commodities: Urad, Chana, Wheat, Guar Seed, Sugar, Potato etc.

National Commodity & Derivatives Exchange (NCDEX)

Bullion: Gold and Silver

Metals: Aluminum, Copper, Nickel, Sponge iron and Zinc.

Oil and Oil Seed: Castor oil, Crude Palm oil, Soy Oil, Soy Bean etc.

Energy: Brent crude oil, and Furnace oil.

Agro Commodities: Cotton, Chana, Maize, Guar seed, Sugar, Rubber, etc.

For newly listed commodities please visit home page of exchange websites

www.mcxindia.com and www.ncdex.com
Q. What are the exchange timings?
Ans. Both MCX and NCDEX provide trading facility from Monday to Saturday.

Monday to Friday: 10.00am - 5.00pm for Agro-based commodities

Monday to Friday: 10.00am - 11.30pm for Precious / Base metals and Energy

Saturdays: 10.00am - 2.00pm for all commodities
Q. Which exchange should I select for trading?
Ans. Both the commodity exchanges have done exceedingly well over the years, in terms of risk management, volumes or launching new & better commodity products. However, before choosing an exchange you need to check the following:
  • The commodity you wish to trade is listed on that exchange.
  • Check the contract specifications of that commodity to ensure it suits you best.
  • There is enough liquidity in the exchange for commodities of interest.
  • Commodity price should be in sync with the physical market prices or its respective benchmark prices.
Q. Where will I find detailed contract specifications?
Ans. You can find detailed contract specifications on the websites of the exchanges – www.ncdex.com and www.mcxindia.com
Q. What is margin?
Ans. Margin is the amount that is required in advance to execute trades on the exchanges.
Q. What is Initial margin?
Ans. Initial Margin is the amount of money deposited by both buyers and sellers of futures contract to ensure the performance of trades executed.
Q. What is maintenance margin?
Ans. Maintenance Margin is an amount over and above the Initial Margin to ensure that the balance in the margin account never goes below a pre-specified level.
Q. What is additional margin?
Ans. Additional Margin is the margin collected to protect the open positions from unexpected volatility prevailing in the market.
Q. What is marked to market (MTM)?
Ans. On the day of entering into the contract, it is the difference of the entry value and closing price for that day. In case of carry forward position, MTM is the difference of the market price less yesterday's closing price.
Q. Is there any limit to which price of a commodity can rise or fall in a day?
Ans. Yes, there are circuit limits or daily price range (DPR) to safeguard the interests of general investors from the extreme volatilities in markets for preventing any unexpected fall or rise beyond a limit. When the circuit limit is hit, there is a cooling period of fifteen minutes after which the trading will begin again with fresh circuit limits. For updated commodity specific circuit limits, please visit www.ncdex.com and www.mcxindia.com
Q. Is there any limit to the quantity I can trade/hold in any given commodity at any point of time?
Ans. Yes, there is a maximum permissible limit on holding a particular commodity for client as well as member. It varies from commodity to commodity and exchange to exchange.

Please see contract specification on exchange website for position limit at client and member level at www.ncdex.com and www.mcxindia.com
Q. What are the terminologies used in trading?
Ans. Long- means buying a commodity in anticipation that the price will move up.

Short - means selling a commodity in anticipation that the prices will come down.

Stop loss - Stop loss is an order to limit an investor's loss on the position he holds. By placing a Stop Order, Investor actually set a loss level which investor is willing to undertake.
Q. Will I receive trade confirmation?
Ans. Yes. You will receive contract notes for your trades. Further, your dealer/relationship manager will update you accordingly.
Q. Who are eligible for opening a commodity trading account?
Ans. Any individual, Hindu undivided family (HUF), proprietary firm, partnership firm, or a company can open an account with us. Only resident Indians can open commodity trading account.
Q. Will I receive a contract note for my transactions?
Ans. Yes, you will receive a contract note on your registered address and also in the email id updated with us. However, if a client requires only Digital Contract Note, he/she will have to register for Electronic Contract Note as per the process suggested by SEBI.

Please note that digitally signed contract notes are valid documents under the Information Technology Act 2000 and the same are also available online under My Account which can be used for Income-tax purpose.
Q. What happens if I have not received my contract note on my registered email id?
Ans. If the contract note is not delivered to your email id, there is a high possibility that it may have bounced back, reasons being- email id updated incorrectly, change in email id, email inbox full, etc. In such a scenario our systems will auto generate a hard copy of the contact note copy and dispatch the same through courier services to your registered mailing address.
Q. Is this service chargeable?
Ans. The service is not chargeable to the client. But incase client requests for additional copies of the same it may be charged.
Q. What are the different types of orders that can be placed on www.investmentz.com?
Ans. a) Limit Order: It is an order where the user specifies the price at (or better than) which the trade should be executed.

b) Market Order: It is an order which should be executed at whatever be the prevailing price on or after submission of such order. If there is no market at that point of time, it takes the last traded price and remains in the system.

c) Day Order: It is an order which is available for execution during the current trading session until executed or cancelled. All day orders will get cancelled at the end of the day during which such orders were submitted.

d) Stop Loss Order: It is an order placed which is kept by the system in suspended mode and will be visible to the market only when the market price of the relevant commodity reaches or crossed a threshold price, which is called as trigger price as defined by the member. It is used as a tool to limit the loss.
Q. When can Stop Loss order be placed?
Ans. Stop Loss order can be placed while placing a fresh order as well as a square off order.

Basics of Stop Loss Order:

Buy: Market Price < Trigger price <= Order Price. (Trigger price entered should be greater than the market price)

Sell: Market Price > Trigger price >= Order Price. (Trigger price entered should be lesser than the market price)

When the market hits the trigger price, the order is forwarded to the exchange and the same gets traded at a price between the Trigger price and the Order price.
Q. What is Call & Trade?
Ans. Call & Trade is a service offered by www.investmentz.com for its customers, which provides customers with a facility to trade over the phone.
Q. Is Call & Trade a secured option?
Ans. Once you call our number, our Call & Trade dealer will ask a few questions to verify your identity. Only after your identity is verified, you would be able to place/ modify/ cancel orders.
Q. Are options also allowed in commodity derivatives?
Ans. Options in goods are presently prohibited under Section 19 of the Forward Contracts (Regulation) Act, 1952. No exchange or person can organize or enter into or make or perform options in goods. However the market expects the government to permit options trading in commodities soon.
Q. Are there any custody charges?
Ans. No. There are no custody charges for holding the demat units
Q. How is the futures contract defined?
Ans. Example: Gold Pure Mumbai 1-Kg future contract expiring on 20th Mar, 2015 is defined as "NCD-FUT-GLDPURMUMK-20-MAR-2015". Wherein "NCD" stands for NCDEX, "FUT" stands for Futures as derivatives product, "GLDPURMUMK" for underlying commodity and "20-MAR-2015" for expiry date
Q. How is the value of the trade calculated?
Ans. It is not necessary that the unit of quantity and price is the same. For eg. Price for Gold is expressed in Rs per 10 gms but the quantity is submitted in gms. Therefore the quantity can not be multiplied directly. The value of an order/trade can be computed by multiplying the quantity with the price and then the result by the 'multiplier'. For eg. Multiplier incase of Gold is 10.
Q. Is Sales Tax applicable on all trades?
Ans. If the trade is squared off sales tax is not applicable. The sales tax is applicable only if a trade results into delivery for the seller. Normally it's the seller's responsibility to collect and pay the sales tax. The sales tax is applicable at the place of delivery. Those who want to give (seller) physical delivery need to have sales tax registration number.
Q. What is dematerialised or demat form of commodities?
Ans. Dematerialisation of commodities implies that these commodities are stored in Exchangedesignated vaults/warehouses and the record of the ownership is in electronic form, just like trading in equity shares. The legal and beneficial owner of the goods gets a credit in his account electronically, which is similar to holding a pass book in the bank. Similarly, transfer of ownership against buy and sale is done from one account to the other, just like money transfer through a cheque.

The depository keeps records of holding and transfers in electronic form. The opening of account and transfer instructions are carried out by the agents of the depository, called Depository Participants (DPs).
Q. What is the difference between delivery in physical form and delivery in demat form?
Ans. In case of physical delivery, a person gets a warehouse receipt in paper form, while in case of delivery in demat form, he gets a credit entry in his demat account.
Q. What is the pay-in and pay-out time for e-Series contracts?
Ans. Funds and delivery pay-in-is at 1:00 pm and pay-out is at 5:30 pm. Pay-in and pay-out for eSeries products are executed on the T+2 basis. Settlement is done from Monday to Friday, excluding holidays notified by the Exchange.
Q. Which are the major commodity exchanges in India?
Ans. There are three national level commodity exchanges to trade in all permitted commodities. They are:

Multi Commodity Exchange of India Ltd, Mumbai (MCX)


MCX is an independent and de-mutualised multi commodity exchange. MCX features amongst the world's top three bullion exchanges and top four energy exchanges. Its key shareholders are Financial Technologies (I) Ltd., State Bank of India and it's associates, National Bank for Agriculture and Rural Development (NABARD), National Stock Exchange of India Ltd. (NSE), Fid Fund (Mauritius) Ltd. - an affiliate of Fidelity International, Corporation Bank, Union Bank of India, Canara Bank, Bank of India, Bank of Baroda, HDFC Bank and SBI Life Insurance Co. Ltd.

National Commodity and Derivative Exchange, Mumbai (NCDEX)


A consortium of institutions promotes NCDEX. These include the ICICI Bank Limited (ICICI Bank), Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSE). National Multi Commodity Exchange of India Ltd, Ahmedabad (NMCE)


It is the first de-mutualised electronic multi-commodity Exchange of India. Some of its key promoters are Central Warehousing Corporation (CWC), National Agricultural Co Operative Marketing Federation of India Limited (NAFED), Gujarat Agro Industries Corporation Limited (GAIC) and Punjab National Bank (PNB).
Q. How do I open a commodities trading account with you?
Ans. Please call us or send email as per the details given in the link here. Please click the link below to contact us


Please click the link below for more information on commodities

Q. What is the importance of Research and analysis in the equities market?
Ans. In India, there are more than 5000 listed stocks available to invest. How does one go about selecting a particular stock?

The process of research and analysis is like a filtration process, which will allows investors to filter and chose the stock or company, which matches your investment criteria.

This process helps investors to identify undervalued, overvalued and growth stocks
Q. What are the major types of research methodologies available in the equity market?
Ans. In the equities market, there are broadly 2 types of research methods available:

A. Fundamental

In this method, the research analyst studies the fundamentals of the stock that includes:
  • Business of the company
  • Past background of promoters, shareholding pattern of the company
  • Current business, products/ services of the company
  • Competitive position in the market in terms of pricing power, market share, growth in sales, customers, revenues, volumes etc
  • Pattern of growth in margins, costs, profits etc
  • Detailed analysis of the financial statements like balance sheet, profit and loss and the cash flow statements
  • Analysis of various financial and operating ratios of the company
  • Analysis of various valuation ratios from a stock price point of view.
  • Meeting the key management of the company to understand the vision and the current business operating environment of the company
  • Meeting key vendors, customers, suppliers of the company to understand their perspective about the company's strengths and weaknesses
B. Technical

Technical analysis is the practice of valuing stocks on past volume and pricing information.
Technical analysis assumes the following:
  • Market value of the asset is a reflection of supply and demand of the asset.
  • Supply and demand are driven by rational factors, such as data and economic analysis, as well as irrational factors, such as guesses.
  • Markets and individual stocks move together given trends.
  • Shifts in supply and demand will shift the trends in the market and can be detected in the market.
Q. What is the difference between technical and fundamental analysis?
  • The main difference between technical analysis and fundamental analysis is the use of financial statements to value equities.
  • Technical analysis is the practice of valuing stocks on past volume and pricing information. Technical analysis combines both the use of past information (how stocks have reacted previously) and "feeling" (how the market is moving the name) to value a security.
  • Fundamental analysis, however, takes a more formal approach. Fundamental analysts review the financial statements of a company and generate ratios, such as price-to-book value, price-to-earnings, return on equity, return on net worth, price to sales, price to cash earnings, enterprise value-to-EBITDA and many more to value a stock.
Q. What are the advantages and disadvantages of Technical Analysis?
Ans. Advantages
  • Technical analysis is easy to understand and can be performed relatively quickly especially with the aid of one of the many types of charting software.
  • Technical analysis does not rely on the use of financial statements for valuation Purposes.
  • Rather than strict fundamental valuation, technical analysis takes into account the "feeling" of the market, which is subjective.
  • The past is not always an indication of future results, calling into question the validity of technical analysis.
  • Technical analysis violates the premise of Efficient Market Hypothesis (EMH) because EMH says it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices.
Q. What are the research products offered by your company and whom do I contact for subscription?
Ans. Please click here to get full details of all our research products
Please click the link below to contact us
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Account statement
A document similar to a bank account statement that indicates the mutual fund units owned. A statement is issued each time the investor carries out a transaction.

Annual report
A write-up given to shareholders containing the yearly record of a mutual fund's performance. The report also informs the investor about the fund's earnings and operations. Reports are sent out yearly.

Assets are a resource of money value such as stocks, bonds, real estate and cash.

Asset class
Different types of investments such as stocks, bonds, real estate and cash.

Asset Management Company (AMC)
The trustee delegates the task of floating schemes and managing the collected money to a company of professionals, usually experts who are known for smart stock picks. This is an asset management company (AMC). AMC charges a fee for the services it renders to the MF trust. Thus the AMC acts as the investment manager of the trust under the broad supervision and direction of the trustees. The AMC must have a net worth of at least Rs10 crores at all times and it can not act as a trustee of any other mutual fund.

Annual Return
The percentage of change in net asset value over a year's time, assuming reinvestment of distribution such as dividend payment and bonuses.

Annualized Returns
Absolute returns over a period (which could be larger or smaller than a year) aggregated to a period of one year.

Applicable NAV
NAV at which a transaction is effected. A cut-off time is set by the fund and all investments or redemptions are processed at that particular NAV. This NAV is relevant if the application is received before that cut-off time on a day. A different NAV holds if received thereafter. Application FormForm prescribed for investors to make applications for subscribing to the units of a fund.

Asset Allocations
Allocation of the portfolio of a mutual fund in various categories of assets such as equity, debt and others on the basis of the investment objective of the scheme. The process of diversifying investments among different types of assets like stocks, bonds and cash in order to optimise risk / return tradeoff based on a person's financial situation and goals.

Average Maturity
Average time to maturity of all fixed-period investments in the portfolio of a scheme.

An increase in an investment's value.

Automatic Investment Plan
Periodic investment of a fixed amount by a unitholder , either directly from his bank account or by issuing post-dated cheques, in his mutual fund account.

Automatic Withdrawal Plan
Allows an investor to receive periodic payments of fixed amount or units from his investment in a mutual fund scheme. Retirees who want a regular income supplement often choose this.

Average Portfolio Maturity
The average maturity of all the bonds in a bond fund's portfolio.
Balanced funds
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 obtain the highest returns consistent with a low risk strategy.

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

A standard used for comparison. Usually to provide a point of reference for evaluating a fund's performance. The common benchmarks for equiy-oriented funds are the BSE 200 index or the BSE Sensex.

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 the market, and a fund with a lower beta has been less volatile than the market. Based on past historical records, a beta higher than 1.0 indicates that when the market rises, the stock will rise to a greater extent than that of the market; likewise, when the market 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 that of the market. 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.

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.

A broker is a licensed person authorised to receive commissions. Brokers are always affiliated with a brokerage company, or broker-dealer network. He 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.

Basis Point (BP)
The smallest measure used in quoting yields on fixed income securities. One basis point is one percent of one percent, or 0.01%.

An investment strategy that first seeks individual companies with attractive investment potential, then considers the economic and industry trends affecting those companies.
Capital Gains
The gains made on sale of securities and certain other assets (including units of mutual funds) are called capital gains. 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.

Call Risk
The risk that bonds will be redeemed (or "called") before maturity. This possibility increases during periods of falling interest rates.

Capital Appreciation
An increase in the value of an investment, measured by the increase in a fund unit's value from the time of purchase to the time of redemption.

Capital Market
A market where debt or equity securities are traded.

Close-ended schemes
Schemes, which have a fixed date of redemption.

Collection Center
Locations where application forms are accepted by funds.

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

The keeper of a fund's securities and other assets.

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 cut-off time in respect of fresh subscriptions and redemption of units. All requests received before the cut-off times are processed at that day's NAV and thereafter at the next day's NAV.

Call money
Money, which is, loaned in the call market, which can be demanded for repayment on call, which basically means immediately. The term call money is also known as money at short notice as it is repayable in 24 hours. It is also traded in the money market.

Capital (or principal)
Initial amount of money invested, excluding any subsequent earnings.

Capital appreciation
Increase in the value of an asset such as a stock, bond, commodity or real estate.

Capital gains/losses
Net profit or losses from the sale of securities in the fund's portfolio. Short-term gains or losses are generated on securities held one year or less; long-term gains or losses pertain to securities held for more than one year.

Capital growth
A rise in the market value of a mutual fund's securities shown by it's net asset value per unit. This is a long-term objective of many mutual funds.

Certificate of Deposit (CD)
Short-term debt instrument issued by scheduled commercial banks excluding regional rural banks. They are unsecured instruments that mature between three months to one year.

Closed-end scheme/fund
A type of fund that has a fixed number of shares usually listed on a major stock exchange. Unlike open-end mutual funds, closed-end funds do not stand ready to issue and redeem shares on a continuous basis. Price is determined by supply and demand.

Closing price
The price of a security after the final trade at the end of the day.

Commercial paper
They are short-term unsecured instruments issued by a company that needs to raise money; and is willing to pay an interest rate. These are included in portfolios of some mutual funds. Such instruments have maturities ranging from 3 months to 1 year.

Coupon Rate
The interest rate that the issuer of a bond agrees to pay the bond-holder until maturity of thebond

A fee charged by a broker or distributor for his or her service in the buying or selling of securities.

A commodity is a product which trades on a commodity exchange. Examples of these are food, metal or another physical substance that investors buy and sell which also includes foreign currencies and financial instruments and indices

Interest earned not only on the initially invested principal but also on accumulated interest during the period.

Consumer Price Index
The index compiled by a governmental agency which follows the cost of living by following the changes in price of basic goods and services over time. This index measures inflation.

Contingent Deferred Sales Charge (CDSC)
A type of exit sales load which is charged when units are redeemed within a specific time period following their purchase. These charges reduce the longer the units are held.

Credit analysis
The process of analysing information on companies and bonds in order to estimate whether the issuer will meet with its future obligations to pay out.

Credit rating
A measure indicating the bond issuer's credit worthiness, or his/ her ability to repay the loan. The bonds are rated by an independent rating agency such as CRISIL, ICRA, and CARE.

Cumulative total return
Usually calculated in the same manner as standardised average annual total return, except that these figures represent the total change in value of an investment over the stated periods and do not reflect any sales charges.

Current assets
Assets that can be converted to cash within a year.

Current liabilities
Liabilities that must be paid within a year.

Cyclical stocks
Stocks which rise and fall in price with the state of the economy, in such industries as construction, automobile, engineering or those affected by the international economy such as shipping, aviation, and tourism. Cyclical stocks are also stocks which are affected by the natural environment such as fertilisers and tea. Examples of non-cyclical stocks would be drugs, insurance, basic foodstuffs and many other consumer products.

Interest rate on a debt security that the issuer promises to pay to the holder until maturity Usually expressed as a percentage of the face value of the security.

Credit Rating
A measure of a bond issuer's creditworthiness or the ability to repay the loan as rated by an independent rating agency, such as CRISIL, ICRA and CARE.

Credit Risk
The possibility that a bond issuer will default, and fail to repay principal or interest as promised. Also known as "default risk".

Currency Risk
The possibility that fluctuating currency exchange rates will affect the rupee value of an investment.

The organization (usually a bank) that keeps and safeguards the custody of securities and other assets of a fund.
Instruments of debt, usually unsecured. They are also usually credit rated.

Debt funds/ securities
A general term for any security representing money loaned that must be repaid to the lender at a future date. Bonds, T-notes, T-bills and money market instruments are debt securities, but they vary in maturities.

A term that denotes the failure to pay the principal or interest on a financial obligation (such as a bond).

Financial instrument whose value is based on the value of another underlying security.

Refers to the selling price of a bond when it's price is below its maturity value.

Portion of profits that a company or a mutual fund distributes to its shareholders or unit holders.

Dividend Reinvestment
In a dividend reinvestment plan, the dividend is reinvested in the scheme itself. Hence instead of receiving dividend, the unit holders receive units. Thus the number of units allotted under the dividend reinvestment plan would be the dividend declared divided by the ex-dividend NAV.

Dividend Warrant
An instrument issued by companies/ mutual funds to an investor for the purpose of payment of dividends

Pay out to shareholders resulting from a mutual fund's realised capital gains, interest, or dividend income. A mutual fund dividend, or distribution, may be physically paid to the investor, or it may be reinvested in the fund, giving the investor more shares.

The investment strategy which spreads investments among securities in different industries, with different risk levels, and in different companies, potentially lowering risk by reducing the impact of any one security. Mutual funds are the best method of diversification because their portfolios consist of a variety of securities, unless otherwise noted. Mutual funds are a diversified investment by nature.

A decline in an investment's value.

Duration is a measure of a bond's lifetime that accounts for the size and timing of the bond's cash flows. Generally, the shorter the duration, the lower the price volatility, all other things being equal.
Earnings (per share)
The net income for a company during a specific period. It is calculated by subtracting the cost of sales, operating expenses and taxes from revenues, for a specific time period. It is the reason corporations exist and often the single most important determinant of a stock's price.

Entry load
The load on purchases after the Initial (Public) Offer.

A type of security representing part ownership in a company/ corporation. Common stocks, preferred stock, and convertible stock are types of equity securities, but debt securities are not, as they do not represent ownership.

Exit load
The load on redemption other than the Contingent Deferred Sales Charge (CDSC) permitted under SEBI Regulations. A fee charged by some funds for redeeming or buying back fund shares. The amount sometimes depends on how long the investment was held, so the longer the time period, the smaller the charge.

Equity Schemes
A scheme that invests primarily in stocks while seeking to provide relatively high long-term growth of capital.

Ex-Dividend Date
The date following the record date for a scheme. When a fund's net asset value reduces by an amount equal to a dividend distribution.

Expense Ratio
A fund's operating expenses, expressed as a percentage of its average net assets.

Ex Dividend Or Ex Distribution
The date when the dividend is deducted from assets of a fund i.e. from the NAV
Face value
The value printed on the face of a stock, bond or other financial instrument or document.

A Fully Convertible Non-Rupee account that can be opened for funds coming in from abroad or from local funds. The funds in the account are held in a foreign currency.

Fixed assets
A long-term asset that will not be converted to cash within a year such as a house or a plot of land.

Fixed deposit
An investment instrument where you invest a fixed amount of money for a fixed period of time at a fixed rate of interest.

Fixed income funds/ securities
A security that pays a certain rate of return such as a bond but do not offer an investor much potential for growth. This usually refers to government, corporate or municipal bonds, which pay a fixed rate of interest until the bonds mature, or preferred stock, which pays a fixed dividend. A mutual fund investing in these types of securities may also be referred to as a fixed-income investment or security.

Fixed rate
A loan in which the interest rates do not change during the entire term of the loan.

Foreign Institutional Investor (FII)
FII means an institution established or incorporated outside India which proposes to make investment in India in securities and is registered with SEBI.

Floating rate
An interest rate, which is periodically adjusted, usually based on a standard market rate outside the control of the institution. These rates often have a specified floor and ceiling, which limit the floating rate. The opposite of having a floating rate is having a fixed rate.

A lower limit for a price, interest rate, or other numerical factor. The price at which a s order is activated (an order to buy or sell at the market when a definite price is reached either above (for a buy) or below (for a sell) the price that prevailed when the order was given). Also the area of a stock exchange where active trading occurs.

Front-end load
A one-off charge that an investor must pay at the time the units of the scheme are bought.

Face Value
The original issue price of one unit of a scheme

A mutual fund is a trust under the Indian Trust Act. Each fund manages one or more schemes.

Fund Category
Classification of a scheme depending on the type of assets in which the mutual fund company invests the corpus. It could be a growth, debt, balanced, gilt or liquid scheme

Fund Family
All the schemes, which are managed by one mutual fund.

Fund Management Costs
The charge levied by an AMC on a mutual fund for managing their funds.

Fund Manager
The person who makes all the final decisions regarding investments of a scheme

Family Of Schemes
A set of schemes with different investment objectives from a single asset management company usually allowing investors to "switch" their investments from one scheme to another at a no charge or a nominal charge.

Fixed Income Security
A security that pays a fixed rate of interest such as a "bond" but do not offer an investor much potential for growth.

Front-End Load
A one-time charge that an investor pays at the time of buying units of a scheme.
A type of government security.

Government securities
Securities that are sold to the public by the government, for example, bonds.

Growth funds
Mutual funds with a primary investment objective of long-term growth of capital. Unlike income, which is somewhat regular and consistent in most cases, growth is much less certain. Growth investments, however, usually outpace the returns on income investments over the long-term (five to ten years, or longer). It invests mainly in common stocks with significant growth potential.

Growth investing
A style of investing that invests in fundamentally sound businesses with the belief that they will go up in price. The stocks in this portfolio are well researched, liquid and of high quality and will usually give you a high P/E ratio and lower dividend yields in comparison to the market.

Growth scheme
A scheme where investments are made in equity and convertible debentures. The objective is to provide capital appreciation over a period of time.

Guaranteed Returns
The return assured by the mutual funds as a minimum return in certain income plans
The possessions or securities in an investors portfolio.
Inception date
The end of a scheme's initial offering period and the start of the scheme's formation.

Income funds
A mutual fund that primarily seeks current income rather than growth of capital. It will tend to invest in stocks and bonds that normally pay high dividends and interest.

An investment strategy that consists of the construction of a portfolio of stocks. It is designed to track the total return performance of an index of stocks.

Inflation risk
The possibility that the value of assets or income will be eroded by inflation affecting the purchasing power of a currency. Often mentioned in relation to fixed income funds as they may minimise the possibility of losing principal.

Initial Public Offer (IPO)
A fixed time period during which the first sale of units of a scheme are made available to the public.

Interest rate risk
The risk that a security's value will change due to an increase or decrease in interest rates. A bond's price will always drop as interest rates rise and when interest rates fall, a bond's price will rise.

A security made available to the public. Mutual funds issue shares to investors in return for cash.

Income / Debt Funds
A fund whose primary objective is current income in the form of interest or dividends. Mutual funds that invest primarily in fixed income securities are called income funds.

Index Funds
A type of mutual fund in which the portfolios are constructed to mirror a specific market index. Index funds are expected to provide a rate of return over time that will approximate or match, but not exceed, that of the market which they are mirroring.

The central government specifies an index linked to the wholesale price index. The indices of two years (year of purchase and the year of sale) are used for the purpose of computing capital gains tax. The purchase price is multiplied by the index of the year of sale and the product is divided by the index of the year of purchase. This benefit is available only if the security has been held for more than 12 months. On sale of equity-oriented mutual fund schemes, one can opt for paying tax at the rate of a flat 10% or go in for paying 20% after taking the benefit of indexation.

A benchmark against which the performance of a scheme is measured. Usually, equity funds use BSE 30 or BSE 200 as the benchmark. For fixed-income funds it is a bond index. The benchmark index must consist of securities similar to which the scheme invests in.

Index Fund
A fund that tries to mirror the performance of an index by investing in securities making up that index. (note: it is not possible for investors to actually invest in the actual index, such as the BSE 30). This is a passive management style which normally results in lower management fees.

Investment Objective
The stated purpose or goal of a security's operations. This term often determines the types of investments the security makes, the results expected, and the level of risk with which it is associated.

Investment Grade
High quality bonds that are rated AAA or higher by a rating agency. Investment grade bonds are considered safe. However, the higher the bond's rating, the lower the interest it offers.
The claims of investors who have loaned to a company. The debts of a company.

The ease with which an asset can be converted to cash. Mutual fund units are generally considered highly liquid investments as they can be sold on any business day at their current net asset value.

Load fund
A mutual fund that charges an extra sales fee on of the other fees. Loads do not mean a fund is managed better. There are two types of loads; front-end, charged at the time of purchase and back-end, charged at the time of redemption.

Liquid Funds /Money Market Funds
Funds investing only in short-term money market instruments including treasury bills, commercial paper and certificates of deposit. The objective is to provide liquidity and preserve the capital

Lock In Period
The period after investment in fresh units during which the investor cannot redeem the units.
Market risk
The potential loss that is possible as a result of short-term volatility of the stock market, indicated by beta. Owning mutual funds shields an investor to some market risk that a stockholder may be vulnerable to because of their diversification.

Maturity date
Date on which the principal amount of a debt instrument or bond becomes due and payable in full.

Maturity value
The amount the issuer agrees to pay out when the bond reaches it's maturity date.

Money market funds
A mutual fund that invests in short-term government securities, certificates of deposit and other highly liquid securities such as T- bills and short-term commercial paper, and generally pays money market rates of interest. An investment in a money market fund is neither insured nor guaranteed by the government or by any other entity or institution, so there is no assurance that the share price will be maintained.

Money Market Instruments
Commercial paper, treasury bills, GOI securities with an unexpired maturity up to one year, call money, certificates of deposit and any other instrument specified by the Reserve Bank of India.

Municipal bond fund
A mutual fund consisting of bonds issued by a state, city, or local government entity. The interest these securities pay is generally passed through to shareholders free of tax.

Mutual fund
A Mutual Fund is a common pool of money from numerous investors who wish to save money. Each fund's investments are chosen and monitored by qualified professionals who use this money to create a portfolio. That portfolio could consist of stocks, bonds, money market instruments or a combination of those. Mutual funds offer investors the advantages of diversification, professional management,affordability, liquidity and convenience.

Management Fee
The amount a scheme pays to its asset management company for its services. Typically, a certain percentage of assets under management. A fund's management fee is listed in its offer document.

Market Timing
Attempting to time the purchase and sale of securities or mutual fund units to coincide with market conditions.

Maturity Date
The date on which the principal amount of a bond is to be paid in full.

Management Fee
The amount paid by a mutual fund to the asset management company for its services; SEBI restricts this to 2.50% p.a. in equity funds and 2.25% p.a. for equity funds.

Minimum Purchase
The smallest investment amount a scheme will accept to open a new unitholder account.
Net Asset Value
Market value of one share of a mutual fund on a given day; also known as the bid price. Unlike the public offering price, the NAV includes no sales charges. The NAV is calculated each day by taking the closing market value of all securities owned by a mutual fund, plus all other assets (e.g. cash), and deducting the fund's liabilities. This sum is then divided by the fund's total number of shares outstanding.

Net profit margin
A measure of a company's profitability and efficiency calculated by dividing a measure of net profits (operating profit minus depreciation and income taxes) by sales.

Net worth
The value found by subtracting total liabilities from total assets.

Net Assets
The net worth of a fund.

No Load Fund
A fund that sells its units to investors without a sales load/charge.

A Non-Resident External Rupee account that NRIs can open with any Indian bank. They can use this account for making investments in India on a repatriable basis.

A Non-Resident Indian who is an Indian citizen or a person of Indian origin but who resides abroad. NRIs have to follow specific rules when investing in India.

An Ordinary Non-Resident Rupee account which can be opened for funds coming in from abroad or from local funds. The amount in the account is, however, non-repatriable.
Offer document
The offer document or prospectus is a booklet, a legal document that provides information about a specific mutual fund such as the funds investment objectives, load structure, subscription and redemption policies. Its purpose is to also inform investors of potential risks involved before they decide to invest in a fund and provides other information that could help an individual decide whether the investment is appropriate for him. An abridged offer document of the scheme also accompanies the application form of every scheme.

Offering price
The price at which mutual fund shares are offered for sale to the public. Also known as offering price. The public offering price represents the net asset value plus any applicable initial sales charges.

Offer Document / Prospectus
A legal document, that describes a mutual fund scheme. It contains information required by the Securities and Exchange Board of India explaining the offer, including the terms, issuer, objectives, historical financial statements,

Open-Ended Scheme
A scheme where investors can buy and redeem their units on any business day. Its units are not listed on any stock exchange but are bought from and sold to the mutual fund.

Operating Expenses
The day-today costs a mutual fund incurs in conducting business, such as for maintaining offices, staff, and equipment. These expenses are paid from the fund's assets before any earnings are distributed.

Opening NAV
The NAV disclosed by the fund for the first time after the closure of an IPO.
How a fund has done in the past and how well it is doing at present. Past performance is often used to get an idea of future performance, however, past performance does not guarantee future performance will be the same.

A pool of individual investments owned by an investor or mutual fund. Portfolios may include a combination of stocks, bonds, and money market instruments. A list of the fund's current portfolio will usually be contained in a mutual fund's annual report.

Preferred stock
A type of capital stock whose holders are paid dividends at a specified rate. It has preference over common stock in the payment of dividends and the liquidation of assets, but does not ordinarily carry voting rights. The benefits of owning preferred stock are realised if the company ever goes bankrupt. If this occurs, preferred stock shareholders receive their money first. General (also known as common) stockholders may not receive any money, if none is remaining after paying preferred stock holders.

Price-earnings ratio (P/E)
One of the benchmarks used by portfolio managers to help them value companies. It is calculated by dividing a company's share price by its earning per share.

Price Of Units
Price offered by a mutual fund for repurchase or sale of a unit on a daily basis.

An offer document by which a mutual fund invites the public for subscribing to the units of a scheme. This document contains information about the scheme and the AMC so as to enable a prospective investor make an informed decision.

Principal (or Capital)
Initial amount of money invested, excluding any subsequent earnings.

Promissory note
A document signed by the borrower in which he promises to repay a loan under agreed-upon terms.

Public Offering Price (POP)
The price at which mutual fund shares are offered for sale to the public. Also known as offering price. The public offering price represents the net asset value plus any applicable initial sales charges.
Rate of return
Rate of return is calculated by subtracting the purchase value by the present value and then dividing it by the purchase value. For equities, we often include dividends with the present value.

Real return
The rate of return earned on an investment after adjusting for the rate of inflation during the time the investment was held.

Cashing in units by selling them back to the mutual fund.

Redemption load
A fee charged by some funds for redeeming or buying back fund shares. The amount sometimes depends on how long the investment was held, so the longer the time period, the smaller the charge.

Redemption price
The price at which a mutual fund's units are redeemed or bought back by a fund. The redemption price is usually equal to the current net asset value per unit and less the exit load if applicable.

The return from abroad of the financial assets of an organisation or individual, and the conversion of foreign currency to Rupees.

Reserve Bank of India, established under the Reserve Bank of India Act, 1934.

The sum of the income of a fund plus its capital gains.

In general, risk is the possibility of suffering loss. There are many types of risk, such as credit risk, principal risk, inflation risk, interest rate risk, and investment risk. If you are prepared to accept greater risk, you have the chance of earning higher returns or profits on your money. Low-risk investments, while generally safer, do not usually produce a high return, hence the loss of potential gain.

Risk/ reward trade-off
The compromise made between high- and low-risk investments. High-risk investments generally generate more earnings, while low-risk ones generate a lower rate of return.

Risk tolerance
The willingness of an investor to tolerate the risk of losing money for the potential to make money.

Rupee Cost Averaging
An investment strategy based on investing equal amounts in a fund at regular intervals. Because more shares are bought when prices are low and fewer shares when prices are high, the average cost of your shares may be lower than the average price over the period you bought them. Rupee cost averaging cannot guarantee a profit or protect against loss in declining markets.

Record Date
The date by which mutual fund holders are registered as unit owners to receive any future dividend or capital gains distribution.

Redemption Of Units
Buying back/cancellation of the units by a fund on an on-going basis or on maturity of a scheme. The investor is paid a consideration linked to the NAV of the scheme

The act of returning money to an investor by the fund. This could be on account of rejection of an application to subscribe units or in response to an application made by the investor to the fund to redeem units held by him. Registrar or Transfer Agent
The institution that maintains a registry of unitholders of a fund and their unit ownership. Normally the registrar also distributes dividends and provides periodic statements to unitholders.
Sales charge
A charge added on to the price of a mutual fund when you buy it.

Securities and Exchange Board of India established under Securities and Exchange Board of India Act, 1992.

Sector Fund
A fund that invests primarily in securities of companies engaged in a specific industry. Sector funds entail more risk, but may offer greater potential returns than funds that diversify their portfolios.

Settlement Date
The date by which a transaction must be settled, that is, to make the payment of funds and the delivery of securities.

Standard Deviation
A measure of the degree to which a fund's return varies from the average of the scheme's own return.

Stock Fund
A fund that invests primarily in stocks.

The movement of investment from one scheme to another usually within the family of schemes. An investor may switch schemes because of market conditions.

The holdings of a mutual fund, such as stocks or bonds. Stocks are securities representing ownership shares. Bonds are securities representing a contractual debt obligation of the issuer to repay the holder, with interest.

Shareholder (or stockholder)
The owner of shares of stock.

Units of ownership in a corporation. In a mutual fund, the value of each unit is calculated by dividing net assets by the number of shares.

S & P 500 stocks (Standard & Poor's Composite Index of 500 stocks)
Market value-weighted index that measures stock market price movements, based on the aggregate performance of 500 widely held common stocks.

A share of stock represents ownership, or equity, in a corporation. When a company needs money to grow and expand, it may sell part of its ownership to the public in the form of shares (stock). In exchange for the money received from the sale, the company gives shareholders a portion of its future profits, as well as a measure of its decision-making power. These securities generally have the most potential for capital appreciation, but their rights are subordinated in the event of a company liquidation or bankruptcy.

Transferring your investment from one scheme to another. An investor may want to switch due to changing market conditions.

Systematic Investment Plan (SIP)
Allows an investor to periodically invest in units by issuing post-dated cheques. It allows the investor to benefit from rupee cost averaging.

Systematic Withdrawal Plan (SWP)
Permits the investor to receive regular payments of a fixed amount or capital appreciation from his investment in a mutual fund scheme on a periodic basis. Retirees in need of a regular income often opt for this.

Sale price
The price at which a fund offers to sell one unit of its scheme to investors. This NAV is grossed up with the entry load applicable, if any.

A mutual fund can launch more than one scheme. With different schemes, in spite of there being a common trust, the assets contributed by the unit holders of a particular scheme are maintained and managed separately from other schemes and any profit/loss from the assets accrue only to the unit holders of that scheme

Scheme Objective
The purpose statement consisting of the goal and the avenues of investment released by the fund.

Sector Fund or Specialty Fund
It concentrates its holdings in a specific industry such as health care, energy, insurance, leisure.

Systematic Withdrawal Plan (SWP)/Recurring withdrawal facility (RWF)
A plan offered with some schemes under which post-dated cheques for fixed amounts (as may be fixed by the fund) are issued to the investors for monthly, bi-monthly or quarterly withdrawals. The withdrawals are as per the requirements of the investor specified by him/ her at the time of investment.

Systematic Investment Plan (SIP)/ Recurring investment facility (RIF)
A program that allows an investor to provide post-dated cheques to the mutual fund to allot fresh units at specified intervals (usually monthly or quarterly). On the specified dates, the cheques are realized by the mutual fund and additional units at the prevailing NAV are allotted to the investor. This enables him to invest as little as Rs 1000 a month and take advantage of rupee cost averaging.

Systematic Transfer Program (STP)
A plan that allows the investor to give a mandate to the fund to periodically and systematically transfer a certain amount from one scheme to another.
Tax Deducted at Source (TDS)
No tax is withheld or deducted at source, where any income is credited or paid by a mutual fund, as per the provisions of Section 194K and 196A of the Act. -down investing
The -down style of investment management places primary importance on country or regional allocation. -down managers generally focus on global economic and political trends in selecting the countries or regions where they expect to find investment opportunities. Only then do they employ a more fundamental analysis of individual stocks in order to make their final selections.

Total return
Return on an investment over a specified period of time, which includes share-price appreciation, reinvested dividends or interest, and any capital gains.

Transaction costs
The costs incurred by the buying and selling of securities including broker commissions and the difference between dealer buying and selling price.

Treasury bills (T-bills)
A short-term security with a maturity of one year or less.

Treasury bonds (T-bonds)
A long-term debt instrument with a maturity of 10 years or longer.

Treasury notes (T-notes)
A certificate representing an intermediate-term loan to the government with a maturity between two to ten years.

Total Assets Under Management
The market value of the total investments of a fund as on a particular date

Total Returns
Returns from an investment calculated taking into account income distribution and capital appreciation.

Transfer Agent
A firm employed by a mutual fund to maintain unitholder records, including purchases, sales, and account balances.

Treasury Bill (T-bill)
A debt security issued by the Indian government, having a maturity of less than a year.

Turnover Rate
Based on the corpus, it is the number of times at which the fund buys and sells securities each year.

A person or a group of persons having an overall supervisory authority over the fund managers. They ensure that the managers keep to the trust deed, that the unit prices are calculated correctly and the assets of the funds are held safely.

Time Horizon
The period of time one can stay invested (eg. number of years to retirement). Longer time horizons can reduce volatility risk.
The interest of the investors in either of the Schemes, which consists of each Unit representing one undivided share in the assets of the Schemes.

Unit Holder
A person who holds Unit(s) under a Mutual Fund.

Unrealized Gain Or Loss
Increase or decrease in the prices of securities held by the fund.
Value investing
The investment approach which favours buying under-priced stocks that have the potential to perform well and increase in price in the future.It first seeks individual companies with attractive investment potential, then considers the economic and industry trends affecting those companies. Value managers usually begin their search with fundamental analysis, in order to find companies whose current prices may fail to reflect their potential longer-term value.

The tendency of an investment or market to rise or fall sharply in price within a short-term period. Volatility is measured by beta.
Year to Date (YTD)
A time period in a calendar year starting from the first of January and ending on the first of January.

Yield to Maturity (YTM)
The yield earned by a bond if it is held until its maturity date.

The annual rate of return on an investment usually expressed as a percentage.

Yield Curve
A graph depicting yield vis-a-vis maturity. If short-term rates are lower than long-term rates, it is a positive yield curve, if short-term rates are higher, it is a negative or inverted yield curve. If there is isn't much difference, it is a flat yield curve.
Zero coupon bond
A bond that is sold at a fraction of its face value. It does not, however, provide periodic interest payments but pays principal upon maturity.
  • Getting Started
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  • Charges & Pay Structure
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Q. What is client code?
Ans. Client code is your unique identifier for us. Whenever you are communicating with us, we shall refer to your client code. Your client code is also your login id for investmentz.com.
Q. I am logging into investmentz.com for the first time. How do I proceed?
Ans. When you are logging into investmentz.com for the first time, click on forgot password link. Enter your client code and PAN card number. You shall receive a mail on your registered email id which will have your new password.
Q. How to reset the password of www.investmentz.com?
Ans. To reset the www.investmentz.com password, visit the website and click on Login Here >> Forgot Password >> enter User ID, PAN Number and click on Submit. You will receive the password on your registered email ID. Login with the password and system will provide a pop up to change it.
Q. While selecting the Services as Trade Now it is asking for Pattern Lock?
Ans. Pattern Lock is given for authentication and additional security purpose. Click on the forget password link to change your pattern lock.
Q. While logging in to www.investmentz.com I am getting the following message – Password is Locked contact Admin
Ans. You need to call the Customer Service Helpdesk at 022 – 28584545, as your account gets locked after three unsuccessful login attempts. The same is enabled immediately after placing a request.
Q. I am not getting the www.investmentz.com password on my email ID?
Ans. In such cases you have to call the Customer Service Helpdesk at 022 – 28584545 or mark a mail to customerservice@acm.co.in.
Q. What do you mean by the following terms?
Ans. Pay In:- To place your order, you need to deposit funds in our account. You can do so by Cheque/NEFT/Payment Gateway (available on website). You can make a Pay In entry only from your registered bank.

Pay Out:- In case you need to withdraw funds from your trading account, you can do so by placing a Pay Out request (refer Manage your funds section)

Auto Square Off:- When you place an order, you are expected to make the payment for the same in T+2 days ( T being today). If you don't have sufficient funds(after T+2 period) then the company shall sell shares in your account to recover the transaction charges.

Demat: Demat is dematerialization in short. Shares are stored in an electronic form in your demat account.

Contract Note: Whenever you place an order, a contract note is a conformation/receipt of the said transaction.
To place your order, you must have
a. An active account
b. Funds available in your ledger. (Refer manage your funds section)

You can place your order either online or offline


When you log into www.investmentz.com, select trade now in the drop down menu, and experience the most advanced and powerful trading platform the industry has to offer. Follow the instructions below to start investing.
Q. How to add stock in market watch?
Ans. Go to www.investmentz.com >> Login ID >> Password >> Service (Trade Now) >> Manage >> Market Watch (Enter Market Watch Name) >> Add Market Watch >> Select Exchange >> Add Scrip >> Segment >> Search Scrip (Enter any scrip name) >> Search >> Scrip (Select from the list) >> Ok >> Save >>Ok
Q. How to place buy/sell order?
Ans. Go to www.investmentz.com >> Login ID >> Password >> Service (Trade Now) >> Select market watch from View >> Select Buy/Sell for any scrip >> enter exchange >> scrip is already selected >>enter quanty >> Order type >> price >> trigger price >> disclose quanty >> order terms >> product type >> trade type >> Market type >> submit

Order Type:
LO: Limit Orders
MO: Market Orders
SL: Stop Loss Orders

Order Terms:
IOC: Immediate or Cancel
DAY: Unexecuted orders valid for the day and gets cancelled automatically, if not executed.

Product Type:
DELIVERY: Delivery Trading
MARGIN: Intraday Trading
OBL: Obligation for BTST

Market Type:
LO: Limit Orders
MO: Market Orders
SL: Stop Loss Orders
Q. How to modify the order?
Ans. Go to www.investmentz.com >> Login ID >> Password >> Service (Trade Now) >> Trade Now >> Order book >> click on radio buton on any scrip >> ok >> modify order >> submit
Q. How to cancel the order?
Ans. Go to www.investmentz.com >> Login ID >> Password >> Service (Trade Now) >> Trade Now >> Order book >> click on check box >> ok


Offline clients can call their local branch/office to place their orders. In case you cannot place your order through them for any reason, you can call our in house team, Call‐2‐Invest


Q. What is this service?
Ans. The call‐2‐invest desk is responsible only for trade execution. You can call the desk and place orders during trading hours in case your local dealing desk is unavailable or your online trading platform is unable to execute your order.
Q. Who can avail this service?
Ans. Every customer who wants to trade in the cash and F&O segments (across all exchanges) can avail this service. Customers will not incur additional charges.
Q. How do I use the 'Call-2-Invest' service?
Ans. You can call us on 022‐28584444 OR 1800-22-9002 and follow the instructions to place an order. You will also need a six digit TPIN, which you would have received when you opened your account. In case you do not remember your TPIN, you can call our customer care centre (022‐28584545) and place a request for it.
Q. How do I place a request for pay-in ?
Ans. Offline Clients or Online Clients
  1. Send a cheque in favour of Asit C.Mehta Invesment Interrmediates Ltd. Or you can NEFT the amount to us
  2. Cheque will be accepted only from a registered bank or additional bank.
  3. After fund Transfer, the client needs to report payin entry by Logging in to www.Investmentz.com >>Login Here >>Login as BackOffice >>Client Account >>Fund Pay in/Payout>> Pay in cheque/DD Entry
  4. Cheque from unregistered bank account will be treated as third party cheque and credit will not be given in the client's ledger.
  5. Client can also transfer funds through registered bank using the Payment Gateway(Only for registered banks). No need of reporting pay in.

BOI clients

BOI clients need to block the funds before placing any order.
Login to www.investmentz.com >> Login Here >> Login with Trade Now >> Fund Management >> Fund Lien >> Select Segment >> Bank Name BOI >> Bank Account no. >> Amount and submit.
Q. How to release the blocked funds if trade is not done?
Ans. BOI Clients can release blocked funds at any time during the day or partial amount can be withdrawn. Login to www.investmentz.com >> Login Here >> Login with Trade Now >> Fund Management >> Fund Release >> Select Segment >> Select Bank Name BOI >> Enter Bank Account No. >> System will show amount which can be withdrawn >> Enter Amount >> Submit.
Q. How to place a fund payout request?
Ans. BOI Clients

BOI clients do not require to place any payout request from their end, since payout will be released as per settlement procedure after T+2 days and bill- to-bill settlement will be done, if there is no debit on settlement date.

Offline Clients or Web Clients

For placing payout request, client needs to visit www.investmentz.com >> Login Here >> Login as BackOffice >> Client Account >> Fund Payin/Payout >> Payout Request Entry.
Further, if you are a Web BOI client, you do not require to place any payout request from your end, as payout will be released as per settlement procedure after T+2 days and bill‐to‐bill se/lement will be done, if there is no debit on the settlement date.

Offline clients can request payout for total amount, but Web clients need to maintain balance of Rs.1000/‐ in the ledger. If client is unable to place request for the payout from his end, he/she can ask his BA to request the same or the client can call the Customer Service Desk at 022 2858 4545 to request a payout entry.
At investmentz.com whenever you buy/sell, you shall be charged a certain percent which we take as brokerage and taxes. To give you more clarity, let us take an example

If you have bought shares worth Rs 100, the your billing would be as follow
Particular Rate
Order Value NA
Brokerage 0.5% of Order Value
Service tax 12.36% of brokerage
Educational Cess 2% of service tax
Secondary educational Cess 1% of service tax
Security Transaction tax Intraday -0.025% for sell order,
Delivery ‐ 0.1% for buy and sell

Demat Charges (after free transactions are over, it is 25 Rs per order for only for sell order).

There are some charges and penales which are levied. The list is given below.

Type of charge Amount When is it applicable How do I avoid these charges
Late Penalty Charges (LPC) 18% p.a (calculated on daily basis debited on weekly basis) LPC is levied in case of no selling or reporting of pay in entry on T+2 days Make sure there is no debit balance in your account after T+2 days
Wrong Reporting Charges ( Pay in) 1% of amount registered as pay in In case, incorrect cheque number or incorrect amount is entered when reporting. Also, if bank is unable to process the amount. Make sure you enter correct details and verify with bank for the same to be done.
Margin Shortage Charges (Derivatives) 1% for three consecutive days and from 4th day 5% ( if shortage happens more than 5 mes the 5% will be charged) In case of margin shorEall Avoid margin shortage while trading.
Transaction Charges in case of delivery selling (on market) Rs 25/- + Taxes per transaction The same would be levied once free transactions are over Refer DP tariff plans to know your plan
Transaction Charges in case of Off market transfer and Inter DP Transfer Rs 40/- + T axes per transaction The same would be levied once free transactions are over Refer DP tariff plans to know your plan
Physical Contract Note and Bill Statements Max. Rs 25/- per contract/bill (Physical and Electronic + Rs 15/- for dispatch) if the brokerage amount works out to less than Rs 25/‐ (For Physical as well as ECN copies) In case you wish to receive contract notes and bill statements in physical form, we can provide you the same via courier. You can receive the same on your email ID. Just register you email ID by contacting customer service.
Q. How do I update my address and bank details?
Ans. For updating of address and bank details:

Send Account Modification form (refer download section in investmentz.com ) Along with:‐

Proof of address: (Copy of any one of the following: ration card, aadhaar card, passport, electricity bill, telephone bill, bank verification letter, bank statement/pass book with latest two months transaction, voter ID card front and back)

Bank proof: (Bank statement not more than two months old, in case of new account, attach welcome letter issued by the bank, cancelled cheque copy. If the account holder name is not pre-printed on the cheque then bank passbook or bank statement should be attached mentioning the MICR Code, IFSC Code, account holder's name, and account number)
Q. How do I update my signature?
Ans. For updating signature, you need to provide the signature modification form with bank attestation on it.
Q. What is the bank details updating process of BOI client's?
Ans. For updating of bank details for BOI client, first you have to update the same in Bank of India DP and then along with updated BOI DP CML, you need to send the POA of Rs 410/‐ cheque along with Modification form to the ACMIIL Head Office.
Q. How do I update my email ID and mobile number?
  • You can call on 022-28584545, or email customerservice@acm.co.in and get the email ID and mobile number updated after completion of verification.
  • You can send the Modification Form to Head Office.
Q. How do I check the modifica/on status?
Ans. You need to contact Customer Service Helpdesk for the status, since you do not have rights to check modification status at your end.
Q. Can I update two different addresses in Trading Account and Demat Account?
Ans. Yes. Send two copies of address proof and address modification form. Mention Demat and Trading separately on the two forms.
Q. Can a individual BO name be changed in demat or not? If yes, what is the procedure?
Ans. Individual BO name can be change in the following two scenarios:
  1. On account of Marriage
  2. Change published in official gaze/e.
You need to give the account modification form duly signed by the account holder(s), self‐a/ested copies of the following documents should be collected by DPs for name change:
  1. Change in name on account of marriage
    • Marriage Certificate or
    • Copy of Passport showing husband's name or
    • Publication of name change in official gazette.
  2. Change in name on account of reasons other than marriage
    • Publication of name change in official gazette.
  3. Change in father's name
    • Publication of name change in official gazette.
Q. How to check reports from our website?
Ans. To check the reports, login to www.investmentz.com and use the following path:
a) Ledger Report:
Client Accounts >> Financial Ledger >> Equity ‐ Derivaves ‐ Currency ‐ MF / Commodies‐SPOT
b) Shares in Demat/Hold:
Equity >> Shares on Hold/ Shares in Demat
c) Transac/on Register/PorGolio Tracker
Equity >> Transaction Register/PorEolio Tracker
Q. How to check bills/contract notes?
Ans. After Logging in to our website for equity/derivave segment:
Equity/Derivave >> Bill Cum Contract/Contract Notes/Bills
Q. How to save the report aHer generating the same?
Ans. after generating a report, click on Export to Excel or word to save it or can directly click on print to get the hard copy.
Q. For the past how many years can a client generate the report from his/her end?
Ans. You can generate the report for the last and current financial year i.e. 2012-13 and 2013-14.
Q. How do I check the demat holdings?
Ans. You need to login into www.investmentz.com and select backoffice from services dropdown and after login, go to:
Equity >> Shares in Demat
Q. How do I check shares on Hold?
Ans. You need to login to www.investmentz.com and select backoffice from services dropdown and after login, go to:
Equity >> Shares on Hold >> Depository >> Type
Q. How to get DIS Booklet?
Ans. You need to fill in a hardcopy of DIS Request Form along with a self-attested photo ID proof (PAN, Driving Licence, Passport Copy) and send it to ACMIIL HO
Q. What is this service?
Ans. The Retail Research team provides research calls based on fundamental / technical analysis. If you are new to the markets or do not know what to buy/sell, you can participate in our research calls.
Q. Who can avail this service?
Ans. Every customer can avail this facility without incurring any additional charges.
Q. How do I avail this service?
Ans. You can send a mail to customerservice@acm.co.in with your client code and mobile number requesting for the same. You will start geUng research calls in various segments on a daily basis. You can also follow us on twi/er at (@ACM_Investmentz)
Q. What type of support will I get?
Ans. Live support:
If you wish to buy/sell certain scrip, our research team will be glad to help you. You need to contact your local dealer who will get in touch with our research team.

Daily research calls:
At ACMIIL, we provide an array of research calls designed for different scenarios.

Following are the type of call we provide:
Smart trades calls:
Smart trades are delivery/positional cash only calls. They comprise both buy and sell recommendaons. Holding period is one to six weeks.

Quick pick calls:
These are intraday cash segment calls given during market hours.

Daily picks:
These are cash segment intraday calls given before the markets open

Master trades high risk calls:
These are mostly intraday long‐short calls on futures and covered calls or covered puts. Sometimes, positions are also carried overnight.

Master trades medium risk calls:
These are positional calls, long-short calls, and put options and sometimes a combination of long-short options strategies designed to reduce risk and maximize gains at the same time.

Investment idea:
Investment idea calls consist of buying and holding stocks for medium-to-long term. Stocks that are well researched fundamentally by our research team are chosen for investments. Using a techno-fundamental method, specific selection criteria are followed in generating these calls. Fundamentally, companies with good corporate governance are chosen. This segment aims for capital appreciation.
Q. How do I view the research reports?
Ans. You can view research reports by using the following path:
www.investmentz.com >> Client code >> Enter Password >> Select Services (Backoffice) >> Login >> Others Services >> Research Reports
Tax Tracker
Q. How to apply and to check the Investment Tax Tracker reports?
Ans. Simply fill the Tax Tracker Form ( refer downloads section in investmentz.com) along with a payment of Rs.1200. This amount can also be debited from your account if you have sufficient balance.
To check tax tracker:
www.investmentz.com >> Client code >> Enter Password >> Select Services (Backoffice) >> Login >> Client Account >> Tax Tracker >> Select the financial year applied for >> Submit.
Q. How will the Investment Tax tracker be useful to me?
Ans. This report will help the client retrieve short-term and long-term capital gains in detail for the selected financial year.
Incase you have any query, request or complaint; you can call our customer service helpdesk between 8.30 am to 5 pm. You can reach us via call, mail & social media too.
Q. Do you have any toll free number for trading?
Ans. Yes, our toll free number is 1800229002 for online clients
Q. How do I post a query through the website?
Ans. You have to use the following path to post a query through our website:
Login to www.investmentz.com >> Other Services >> Customer Care >> Raise Query.
Q. What are the different means through which a client can post the query?
Ans. You can post a query through the following ways:
a. Through Website: Login to www.investmentz.com >> Oter Services >> Customer Care >> Raise Query
b. Through Email: You can mail the query from his/her registered email ID to customerservice@acm.co.in
c. Through Phone: You can call the customer care at 022‐28584545 and place a query.
Q. Through which browsers can I login to www.investmentz.com?
Ans. You can login to our website through Internet Explorer 9+, Mozilla FireFox 13+, Chrome 19+, Safari 5+, and Opera Mini 12+.
Q. What do I do if I click on Transac/on Register and the previous window appears?
Ans. Logout and delete all cookies and browsing data.A6er doing that, Click on Tools >> Internet Go to tools >> Disable the POP up blocker (it should be turn on POP up blocker) Go to tools >> Click on internet options >> Click on privacy >> Click on advanced >> Click on override automac cookie handling and click on always allow session cookies. Go to tools >> click on compatibility view.
Login again to access reports.
Note: The above mentioned steps and settings are only for the internet explorer browser. In the google chrome browser, just delete the history and all other settings are by default.
Q. Can I login to www.investmentz.com through my mobile phone?
Ans. Our website is accessible on all devices, PCs, Mobiles, Tabs through the Android Platform.
Q. What if I am not able to login despite following all steps pertaining to setings?
Ans. In that case, kindly call us at 022‐ 2858 4545 and press opon 1 for the technology department.
SEBI Reg. Nos | BSE CM:INB 010607233 & Derivatives:INF 010607233 | NSE CM:INB 230607239 | Derivatives INF 230607239 & Currency Derivatives INE 230607239 | MCX SX INB 260607230 | Derivatives INF 260607230 and Currency Derivatives INE 260607230 | DP: IN-DP-CDSL-28-99 and Merchant Banking INM000010973.