Glossary attachment

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Account Statement

Means statement of transactions in Units in the folio of the Holder.

Account Value

The total rupee value of mutual fund units in a unit holder's account. Account value is calculated by multiplying the number of fund units held in an account by the current net asset value per unit (NAV). If the account includes more than one fund, the results of this calculation for each fund are added together to obtain the value of the account.

Accrued Interest

Interest income owing on a bond or a debenture since the last payment was made, but not yet paid. The purchaser of the bond or debenture will pay the market price, plus the accrued interest.

Acquisition Cost

Cost of acquiring units of a mutual fund, including commissions and fees paid at the time of purchase.

Allocation Scheme

Means the allocation scheme(s) offered by the Pension Fund Manager in light of the Prescribed Allocation Policy issued by the Commission from time to time.

Anniversary Date

Means the Business Day following the completion of one full year from the opening of the Individual Pension Account with the Pension Fund Manager and thereafter the Business Day following completion of subsequent one full year.

Annual Meeting

Yearly shareholder's meeting at which the company's directors report on the preceding year and shareholders vote on matters of importance to the company. Annual meetings apply only to funds that are established as mutual fund company.

Annual Report

An audited formal financial statement and report on its operations, distributed by a publicly held firm to its shareholders after its fiscal year-end.

Annualized Rate
The rate of return that would be earned if the security were invested for a one- year term.

A contract, usually between an insurance company and an individual, under which an amount is paid to the insurance company in exchange for the right to receive future regular payments, over a specified period of time.


(1) Everything a company owns or is due to the corporation.
(2) All property (personal and real estate), financial investments (including mutual funds) and other financial resources owned by an individual.

Asset Allocation

The process of selecting the optimal combination of securities from the different asset classes for an institutional or individual portfolio. Over time the portfolio will be re-balanced as markets change or the circumstances of an investor's personal and financial situation change in the case of an individual portfolio.

Asset Class

Three types of asset classes that can be held in a portfolio: cash or cash equivalents (treasury bills, commercial paper and other short-term promissory notes), fixed income investments (bonds, debentures and preferred shares) and equity securities (common shares).


An intensive examination of the accounting and financial procedures and practices of a company or mutual fund, and is carried out by auditors. See Auditors.


Chartered accountant firm, responsible for conducting an independent audit. They are responsible for professionally examining and verifying a company's accounting documents and supporting data for the purpose of rendering an opinion as to their accuracy, consistency and fairness.

Authorized Shares

The total number of shares declared by a corporation at the time of its incorporation that can be issued, limited by its articles of incorporation. In the case of a mutual fund corporation, the charter permits an unlimited number of shares to be issued on a continuous basis.

Average Cost

Weighted average of the price paid per unit, based on the total units purchased in an account.

Average Maturity

Average time remaining to maturity of bonds in a portfolio. A longer average term to maturity will provide the investor with a higher yield, but also subjects the investor to potentially higher risk if interest rates were to rise.

Averaging Down
Buying more of a security at a lower price than the original investment. The primary aim is for the investor to reduce the average cost of their security.
Back-End Load

Means Sales Load deducted from the Net Asset Value in determining the Redemption Price.

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