India4u - Business

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	AMC Same as Asset Management Company. Annual fund operating expences The expenses incurred, during a particular year, by Asset Management Company for managing the funds. Acid test ratio It is the ratio indicated by dividing a company's current assets by current liabilities. It reflects the financial strength of a company and hence called Acid test ratio. Arbitrage Attempting to profit by exploiting price differences of identical or similar financial instruments on different markets or in different forms. Asset allocation The process of diversifying the investments in different kinds of assets such as stocks, bonds, real estate, cash in order to optimize risk. Asset Management Company A Company registered with SEBI, which takes investment/divestment decisions for the mutual fund, and manages the assets of the mutual fund. Automatic reinvestment An investment option for mutual fund unit holders in which the proceeds from either the fund's dividends or capital gains, or both, are automatically used to buy more units of the funds. Top