L&T Mutual Fund
L&T Mutual Fund

Basics of Mutual Fund

Account Statement
A document issued by a Mutual Fund house, indicating details of the transactions and the mutual fund units held by the investor. It is usually issued in lieu of a unit certificate(clickable).

An individual/organization recognised and authorized by a certifying agency in India to give professional advice on investment and financial planning. Normally, an adviser may charge hid clients separate fees for his services.

Annual Report
A report that the mutual fund house sends to its shareholders , containing the fund’s audited financial statements (Balancesheet, P&L) and performance over the last fiscal year. The annual report also has fund’s portfolio holding as on the last business day of the fiscal year.

Annualised Return
The return that an asset achieves over a period of one year. It is ideally used for comparison purposes.

An increase in the investment value is called appreciation. For example, when the Net Asset Value of an mutual fund scheme increases from Rs. 20 to Rs. 25, it is said to have appreciated by Rs. 5.

Stocks/securities, cash and receivables owned by a fund.

Asset Allocation
An investment strategy that distributes the money held by the mutual fund across various asset classes, based on a fund’s investment objective as stated in the offer document.

Asset Management Company
A company/firm that pools funds from investors and undertakes the responsibility of investing the funds across various asset classes with stated objectives.

Average Maturity
For mutual fund schemes that invest in debt securities, the average amount of time until the debt security matures is called average maturity. Changes in interest rates impact those funds with longer average maturity.

Association of Mutual Funds of India (AMF)
An association dedicated to developing the Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain standards in all areas with a view to protecting and promoting the interests of mutual funds and their interest holders.

The market value of assets that an investment management company manages on behalf of investors.