This fund invests in fixed income instruments such as debentures (bonds), Treasury Bills etc. Preferred by investors who want steady income and not willing to take much of risk.
An individual or a corporation serving as principal underwriter of a mutual fund's shares, buying shares directly from the fund, and reselling them to other investors.
In a dividend plan the fund pays dividend from time to time as and when the dividend is declared.
Average duration provides a measure of a fund's interest-rate sensitivity � the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. The relationship between funds with different durations is straightforward: A fund with a duration of 10 years is twice as volatile as a fund with a five-year duration. Duration also gives an indication of how a fund's NAV will change as interest rates change. A fund with a five-year duration would be expected to lose 5% from its NAV if interest rates rose by one percentage point or gain 5% if interest rates fell by one percentage point.
A basic risk management tool in which an investor maintains a mix of common stocks, bonds money markets and other investments to reduce potential risk.
When an investor invests with the idea of exiting from the fund immediately after the dividend is paid.