Glossary

Active funds are mutual funds or ETFs where a fund manager actively makes investment decisions to potentially outperform a specific market benchmark, like the Nifty 50. These managers use research and strategic decisions to select stocks and other assets, aiming to generate higher returns than the benchmark index.

Alpha measures a portfolio manager’s ability to outperform a market index. It is a measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. Positive alpha indicates outperformance due to the fund manager’s skill, while negative alpha suggests underperformance.

Arbitrage is an investment strategy where an investor simultaneously buys and sells the same (or very similar) asset in different markets to take advantage of temporary price differences to generate risk-free profits.

The strategy of dividing an investment portfolio among different asset classes, such as equities, bonds, and cash, to balance risk and return based on an investor’s financial objectives, risk tolerance, and investment time horizon.

AUA (Assets Under Advice) refers to the total value of client assets that a financial advisor or advisory firm gives advice on.

AUM (Assets Under Management) refers to the total market value of all the investments managed by a financial institution or investment advisor on behalf of clients.

A Balanced Fund is a mutual fund that invests in both equities and debt, aiming for moderate risk and a blend of growth and income. The fund typically maintains a 40-60% allocation in equities and debt.