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Mutual Fund

What is Net Asset Value (NAV) of a Mutual Fund scheme?

Net Asset Value (NAV) is the performance measure of an Mutual Fund Scheme. Mutual funds invest the money collected from the investors in securities markets or you may say in equity share at stock market. It means 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...

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Loans & Advances

What is External Commercial Borrowing (ECB) ?

ECB refer to borrowings by corporate & FIs from international market. ECBs are part of India? overall external debt. ECB is permitted for import of capital goods, implementation of new projects, modernisation of existing production units. Use of ECB for on lending or investment in capital market or acquiring a company including RE is not permitted. ECB more than USD 20 million per borrower per financial year is permitted for foreign currency expenditure & has to parked overseas for as...

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Loans & Advances

What is Perpetual Bonds ?

These are securities without any maturity.

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What is Coupon Rate ?

A long-term debt instrument on which the issuer pays interest periodically

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Who are Blue Chip Companies ?

A share of a company that is financially very sound, with an impressive track record of earnings and DIVIDENDS, and which is highly regarded for its competent management, quality products and/or services.

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Loans & Advances

What is Loan Amortization ?

This is generally the term used in paying Loan installments.The reduction of an amount at regular intervals over a certain time period.

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Banking Terms

What is Accrual Basis ?

A method of accounting that recognizes revenues and expenses as they accrue, even though cash would not have been received or paid during the accrual period.

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Banking Terms

Define Arbitrage

The simultaneous purchase and sale transactions in a security or a commodity, undertaken in different markets to profit from price differences.

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