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NAV, TER, exit load, folio, SIF — NISM ke mutual fund workbooks ki poori dictionary
Published by The Retail Trader · AUG 08, 2026 · Mutual Funds & AMC
Mutual fund ki marketing simple hai, par uske paperwork ki bhasha nahi. Scheme document, account statement aur RTA ke har form mein wahi shabd baar-baar aate hain — aur unka matlab NISM ke workbooks mein exactly define kiya gaya hai. Neeche wahi definitions hain, NISM ke Series V (MFD, MFF, SIF) aur Series II (RTA) workbooks se, English mein jaise wo likhi gayi hain.
A se D tak ke terms:
• AAmfs — Schemes with this rating are considered to have the high degree of safety regarding timely receipt of payments from the investments that they have.
• ABC Income Fund — Debt fund that invests pre-dominantly in debt instruments, with the objective of generating regular income for its investors.
• Accrued interest — Interest accrual at coupon rate from the previous coupon date to the settlement date of the trade.
• Aggressive Hybrid Fund — An open ended hybrid scheme investing predominantly in equity and equity related instruments.
• Appropriateness — Selling only that product that is identified as best suited for investors within a defined upper ceiling of risk appetite.
• Arbitrage Fund — An open ended scheme investing in arbitrage opportunities.
• Arbitragers Arbitrage — Deal that produces profit by exploiting a price difference in a product in two different markets.
• Asset securitisation — Process whereby commercial or consumer credits are packaged and sold in the form of financial.
• Balanced Hybrid Fund — An open ended balanced scheme investing in equity and debt instruments. The investment in equity and equity related instruments shall be between 40 percent and 60 percent of total assets while investment in debt instruments.
• Banking and PSU Fund — An open ended debt scheme predominantly investing in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds.
• Base Price — Base price generally act as reference price for trading for start of the day. Generally, on the first day of trading (i.e., on introduction) of contract, it would be the theoretical futures price.
• Basis — The difference between the spot price and the futures price is called basis. If the futures price is greater than spot price, basis for the asset is negative.
• Basis of allotment — Process of deciding the number of shares that each investor is entitled to be allotted.
• Beneficial owner — Natural person or persons who ultimately own, control or influence a client and / or persons on whose behalf a transaction is being conducted.
• Bid price — Price the buyer is willing to pay and ask price is the price at which the seller is willing to sell.
• Bond (or any financial instrument) — Set of cash flows occurring at different times during its life.
• Bond liquidity — How easily a bond can be bought or sold in the market without affecting its price significantly.
• Bond seniority — The order in which bondholders are paid in case the issuer defaults or goes bankrupt.
• Butterfly Spread As a collar — Extension of the covered call, a butterfly spread is an extension of the short straddle.
• Buyback of shares — Repurchase of shares by the company from its existing shareholders.
• Calendar spread — The arbitrage between futures contracts of different expiration months.
• Calendar spread position — Combination of two positions in futures on the same underlying - long on one maturity contract and short on a different maturity contract.
• Cheque truncation — Stopping the flow of the physical cheques issued by a drawer to the drawee branch.
• Confidentiality — Limiting access of systems and information to authorized users.
• Conservative Hybrid Fund — An open ended hybrid scheme investing predominantly in debt instruments.
• Contra Fund — A contra fund is an open ended equity scheme following contrarian investment strategy. Minimum investment in equity & equity related instruments shall be 65 percent of total assets.
• Contract Cycle — It is a period over which a contract trade. Index and stock futures contracts traded on the NSE follow a three-month trading cycle.
• Contract multiplier — Futures contracts are traded in lots. The lot size or contract size for the index and stock futures is determined by the exchange. Contract sizes are different for each stock and index traded in the derivatives segment.
• Contract trading cycle — This is the period over which the option contract is traded. Index options in India are available for a wider range of expiration dates as compared to stock options.
• Contract Value — To arrive at contract value, we have to multiply the price/rate with contract multiplier or lot size or contract size.
• Controlling ownership interest — Ownership of/ entitlement to: a) more than 10 percent of shares or capital or profits in case of a company.
• Convertible bonds — Bonds issued by corporates and such bonds get converted to equity shares at a specified time at a pre-fixed conversion price.
• Corporate Actions — Event carried out by a company that materially impacts its stakeholders (e.g.
• Cost of Carry — Relationship between futures prices and spot prices.
• Counterparty risk — Risk of an economic loss from the failure of the counterparty to fulfil its contractual obligation.
• Credit event — Downgrade of a debt instrument below investment grade by SEBI registered Credit Rating Agency (CRA).
• Credit Rating Agency (CRA) — Company that provides information about the riskiness of a debt instrument or a company in terms of its promised performance of a debt instrument.
• Credit Risk Fund — An open ended debt scheme predominantly investing in AA and below rated corporate bonds.
• Cyber Resilience — Organization's ability to prepare and respond to a cyber- attack and to continue operation during, and recover from, a cyber-attack.
• Daily settlement price — The exchange follows a daily settlement procedure for open positions in equity index and stock futures contracts.
• Daily Settlement price (DSP) — It is required mainly for MTM settlement. The settlement price is weighted average futures price (VWAP) of the trades generally in the last 30 minutes of trading (i.e., close price), if close price is not available then.
• Default risk — Risk that a borrower may not honour the commitments for payment of interest and/or principal.
• Demat Account — Since demat accounts of minors can be held only on a single-name basis, the account opening process has to be redone for a minor-turned-major. This involves the opening of a new demat account.
• Designated Stock Exchange — The recognised Stock Exchange in which the Basis of Allotment has to be approved and chosen by the issuer as a Designated Stock Exchange for the purposes of the current issue.
• Dividend Yield Fund — An open ended equity scheme predominantly investing in dividend yielding stocks. Scheme should predominantly invest in dividend yielding stocks.
• Duration management — Strategy adopted by funds with the mandate to do so where the fund manager alters the duration of the portfolio in anticipation of changes in interest rate scenario.
• Dynamic Bond — An open ended dynamic debt scheme investing across duration.
• Dynamic bond fund — Category where the fund manager may take a view on the interest rate movements and positions the portfolio to benefit out.
E se M tak ke terms:
• Earnings per Share (EPS) — Net profit after tax ÷ No. of equity shares outstanding.
• Equity Linked Savings Scheme (ELSS) — An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit.
• Equity Savings — An open ended scheme investing in equity, arbitrage and debt. The minimum investment in equity and equity related instruments shall be 65 percent of total assets and minimum investment in debt shall be 10 percent of total assets.
• Even though — Contrarian indicator, investors must weigh in other prominent factors before betting on the prevailing market sentiments.
• Execution only platforms An EOP — Any digital or online platform which facilitates transactions such as subscription, redemption and switch transactions in direct plans of schemes of Mutual Funds.
• Expiration Date — The day on which a derivative contract ceases to exist is known as the expiration date. It is the last trading date/day of the contract.
• Expiration Day — This is the day on which a derivative contract ceases to exist. It is the last trading day of the contract. On expiry date, all the contracts are compulsorily settled.
• Face value of a share — Value of a company listed in its books and share certificates and is fixed.
• Final Settlement — Final settlement can be cash settled or physical settled. In case of cash settlement only the profit and loss resulting from positions shall be paid / received from the participants.
• Final settlement price — This is the price at which all open positions in the near-month futures contracts are finally settled on the expiration day of the near-month futures contract.
• Floater Fund — An open ended debt scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives).
• Focused Fund — An open ended equity scheme investing in maximum 30 stocks (the scheme needs to mention where it intends to focus, viz, multi cap, large cap, mid cap, small cap).
• Forecasted Volatility — The act of predicting the volatility over the desired time frame.
• Forward Rate Agreement (FRA) — Interest rate derivative contract that involves exchange of interest payments on a notional principal amount, on a future date, at agreed rates, for a defined forward period.
• Fundamental and Technical analysis — Study of the business and financial statements of a firm in order to identify securities suitable for the strategy of the schemes as well as those with high potential for investment returns and where the risks are low.
• Gilt Fund — An open ended debt scheme investing in government securities across maturity.
• Goal setting — Very important exercise, while planning for investments.
• Implied volatility — Dynamic figure that changes based on activity in the options marketplace.
• Interest Payment Dates — Dates on which interest/coupon is paid to bond holder by the issuer.
• Interest Rate Derivative (IRD) — Financial derivative contract whose value is derived from one or more interest rates, prices of interest rate instruments, or interest rate indices.
• Investment categories — Funds can be classified depending on investment category (also called asset class) they focus on. For example, equity funds invest in equity shares;
• Investment limits — Maximum and minimum amount an investor can invest There is a segment on Highlights/Summary of the scheme available at the beginning of the SID.
• Investment Objectives — Funds can be classified depending on their investment objectives.
• Investment Risk — Funds can be grouped according to the risk associated with the investment objective and portfolio. Equity funds have a greater degree of risk as compared to debt funds.
• Investor sentiment — The overall mood or attitude of investors toward market conditions.
• Large and Mid Cap Fund — An open ended equity scheme investing in both large cap and mid cap stocks. The minimum investment in equity and equity related instruments of large cap companies shall be 35 percent of total assets.
• Large Cap Fund — An open ended equity scheme predominantly investing in large cap stocks.
• Life Cycle Fund — Scheme following glide path strategy-based investing across various asset classes i.e. Equity, Debt, InvITs, ETCDs, Gold & Silver ETF.
• Liquid funds — Least risky, as they invest in very short-term securities.
• Long Duration Fund — An open ended debt scheme investing in debt and money market instruments with Macaulay duration greater than 7 years.
• Long term debt instruments — The instruments with original maturity exceeding one year.
• Low Duration Fund — An open ended low duration debt scheme investing in debt and money market instruments with Macaulay duration between 6 months and 12 months.
• Ltd (FBIL) — Independent benchmark administrator for interest rates and foreign exchange.
• Main Board — Recognized stock exchange having nationwide trading terminals, other than SME exchange.
• Market capitalization — Market value of a company, calculated by multiplying the total number of shares outstanding to its current market price.
• Maturity date — Date in the future on which the investor's principal will be repaid.
• Medium Duration Fund — An open ended medium term debt scheme investing in debt and money market instruments with Macaulay duration of the portfolio being between 3 years and 4 years.
• Medium to Long Duration Fund — An open ended medium term debt scheme investing in debt and money market instruments with Macaulay duration between 4 years and 7 years.
• Mid Cap Fund — An open ended equity scheme predominantly investing in mid cap stocks.
• Model Risk — Risk of mis-pricing or improper valuation of derivatives.
• Modified duration — Approximation of the percentage change in bond price for a given change in yield.
• Money Market Fund — Open-ended debt scheme investing in money market instruments having maturity upto 1 year.
• Multi Asset Allocation — An open ended scheme investing in at least three asset classes with a minimum allocation of at least 10 percent each in all three asset classes.
• Mutual fund — Vehicle (in the form of a "trust") to mobilize money from investors, to invest in different markets and securities, in line with stated investment objectives.
• Mutual Fund Investments — When the units are held on behalf of the minor, the ownership of the units, vest with the minor. The guardian may operate the minor's account only until the minor attains the age of majority. As per SEBI circular no.
N se Y tak ke terms:
• National Automated Clearing House (NACH) — Centralised clearing system launched by the National Payments Corporation of India (NPCI).
• NAV is calculated as — (Total Assets - Liabilities) / No. of units outstanding.
• Net asset value (NAV) — Per unit representation of the net assets of a fund.
• NFO Close Date — This is the date up to which investors can invest in the NFO.
• NFO Open Date — This is the date from which investors can invest in the NFO.
• Online Bond Platform — Any electronic system, other than a recognised stock exchange or an electronic book provider platform, on which the debt securities which are listed or proposed to be listed, are offered and transacted.
• Online Bond Platform Provider — Any person operating or providing an online bond platform.
• Open Market Operations OMOs — Market operations conducted by the RBI by way of sale/ purchase of G-Secs to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
• OTC derivative market — Less regulated market because these transactions occur in private among qualified counterparties, who are supposed to be capable enough to take care of themselves.
• Overconfidence This bias — A person's overconfidence in one's abilities or judgment.
• PAN Card — The PAN issued to a minor will have to be resubmitted to the Income Tax authorities, for issuance of a new card, with the same number, but the new signature of the minor-turned-major.
• Portfolio beta — Weighted average of betas of individual stocks in the portfolio based on their investment proportion.
• Portfolio Description — The description of the way the portfolio will be managed in terms of how assets will be allocated and securities selected will help investors assess the suitability of the scheme to investors.
• Price Band — The price range (maximum and minimum price) for the day within which contract can be traded for that day. Generally specified as a +/-% to base price.
• Price risk — Price movement of the asset held by a market participant, in an unfavourable direction.
• Private Placement — An offer of sale of debt securities by an issuer to a select group of people/institutions.
• Pull to par — Movement of a bond's price toward its face value as it approaches its maturity date.
• Rating Migration Risk — Fixed income securities are exposed to rating migration risk, which could impact the price on account of change in the credit rating.
• Redemption — Investors' request to return their investments in a fund.
• Restrictions on Investments — Regulation 41 i. Any investment to be made under regulation 39, other than investments made by gold exchange traded fund schemes and silver exchange traded fund schemes, shall be subject to the investment restriction specified.
• Reverse repo — Exact opposite transaction which is essentially a collateralized lending of funds.
• Rights Issue — Issue of fresh capital made to the existing investors of a company.
• Rolling returns — Average annualized return calculated for multiple consecutive holding periods in an evaluation period.
• Scheme Re-Opening Date — This is the date from which the investors can offer their units for re-purchase to the scheme (at the re-purchase price); or buy new units of the scheme (at the sale price).
• Sectoral/ Thematic — An open ended equity scheme investing in a specific sector such as bank, power is a sectoral fund. While an open ended equity scheme investing in line with an investment theme such as housing, infrastructure is a thematic fund.
• Security selection — Attempt to select good quality securities that are likely to perform well in the future, as well as avoid those securities where the future may be bleak.
• Short Duration Fund — An open ended short term debt scheme investing in debt and money market instruments with Macaulay duration between 1 year and 3 years.
• Short term debt instruments — The instruments with original maturity of upto one year.
• Size of the loan — This generally indicates the kind of assets financed with loans. While a pool of loan assets comprising of smaller individual loans provides diversification, if there is excessive reliance on very small ticket size, it may result.
• Small cap Fund — An open ended equity scheme predominantly investing in small cap stocks.
• Smart Beta Fund — Extension of index or Exchange Traded Funds (ETFs) as they change the basis of the exposure in the portfolio to the index using alternative strategies.
• Spot price (S) — It is the price at which the underlying asset is trading in the spot market.
• Spot price/rate — The price/interest rate at which the underlying asset trades in the spot market.
• Spread Risk — In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio.
• Suitability — A snapshot of the suitability of the product can be assessed from the product labels that have to be provided with any product literature.
• Systematic Transfer Plan (STP) — Facility for periodic redemption from one scheme and investment into another scheme of the same fund.
• Target Maturity Date Funds (TMF) — Type of debt mutual fund in India that offer a unique investment strategy.
• Target Maturity Funds (TMF) — Type of debt mutual fund in India that offer a unique investment strategy.
• Tax deduction — A related matter is the tax deduction that may be available in case of certain products.
• Taxability of income — What one retains after taxes is what matters, and hence, taxation of the earnings is another important factor that one must consider.
• Tracking error — Measure of the consistency of the out-performance of the fund manager relative to the benchmark.
• Trading Platform — The main stock exchanges in India facilitate screen based trading from member offices around the country. The trading system provides for anonymous trades and price-time priority in the prices at which trades are done.
• Transactions — Purchase and repurchase prices The information available in the SID for NFOs and Ongoing Offer covers information on the price at which investors can purchase and redeem units.
• Ultra Short Duration Fund — An open ended ultra-short term debt scheme investing in debt and money market instruments with Macaulay duration between 3 months and 6 months.
• Value Fund — A value fund is an open ended equity scheme following a value investment strategy.
• Value investment style — Approach of picking up stocks, which are priced lower than their intrinsic value, based on fundamental analysis.
• Volatility — Magnitude of movement in the underlying asset's price, either up or down.
• wind- down plan — A process or plan of action employed, for transfer of the entire operations of the QRTA to an alternative RTA/ QRTA registered with SEBI, that would take over the operations of the QRTA in scenarios such as erosion of net-worth.
• Yield to Maturity — Very simple measure and does not take into account the time value of money as it uses the same yield to discount all future cash flows irrespective of their time of arrival.
• Yield to maturity (YTM) — Return that the investor gets provided the security is held till maturity.
Ye wahi vocabulary hai jispar aapka fund house, distributor aur RTA roz kaam karte hain. Isse padh lene ke baad scheme information document ek legal deewar nahi, ek padhne layak document lagta hai.
Is journal ke terms aur definitions NISM ke apne certification workbooks se liye gaye hain, sirf educational reference ke liye — ye koi official NISM material nahi hai aur na hi koi buy ya sell recommendation. Regulations aur limits SEBI time-time par badalta hai, isliye exam ya compliance ke liye hamesha NISM ka latest workbook hi authority hai.