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Jargon Buster

A B C D E F G H I K L M N O P R S T V Y Z
Back-End Load

A fee charged to the investor on the redemption of his investments from a particular mutual fund. This is charged as a % of value of units held. It typically declines every year the investor stays invested.

Balance Sheet

Balance sheet is a financial statement of a company which shows its assets and liabilities. It depicts the company's financial position at a particular point of time.

Basis Point

One basis point is equal to 1/100th of a percent (0.01%) and is used for meauring the returns of various financial securities.

Bear Market

A situation where share prices fall drastically, and majority of investors sell their shares.

Benchmark

A market index which is used as a standard to match with the fund's performance. Eg- Nifty, Sensex, BSE500 etc.

Beta

Beta is a measure of volatility or sensitivity of the fund in comparison to the market. Beta < 1 indicates fund is less volatile than market.

Beta

Beta is a measure of volatility or sensitivity of the fund in comparison to the market. Beta < 1 indicates fund is less volatile than market.

Blue-Chip Stocks

Blue chip companies are the large well known organisations with high quality stocks. Their financial performance has been stellar from years and are known for rewarding their investors.

Bond

Bond is a debt instrument, which has a fixed intrest rate payable at pre-defined intervals, and maturity date. It is used by company to raise capital in form of loans from the investor.

Capital Gains

Capital gains is the profit which the person makes when he sells the asset. Selling price - purchase price = Capital gains.