c

A mutual fund is an entity that pools the money of many investors -- its unit-
holders -- to invest in different securities. Investments may be in shares, debt
securities, money market securities or a combination of these. Those securities are
professionally managed on behalf of the unit-holders, and each investor holds a
pro-rata share of the portfolio i.e. entitled to any profits when the securities are
sold, but subject to any losses in value as well. c

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mutual funds hire full-time, high-level investment professionals. Funds can afford to
do so as they manage large pools of money. The managers have real-time access
to crucial market information and are able to execute trades on the largest and
most cost-effective scale.cc

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mutual funds invest in a broad range of securities. This limits investment risk by
reducing the effect of a possible decline in the value of any one security. mutual
fund unit-holders can benefit from diversification techniques usually available only
to investors wealthy enough to buy significant positions in a wide variety of
securities.

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A mutual fund let's you participate in a diversified portfolio for as little as

Rs.5,000/-, and sometimes less. And with a no-load fund, you pay little or no sales
charges to own them.


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You own just one security rather than many, yet enjoy the benefits of a diversified
portfolio and a wide range of services. Fund managers decide what securities to
trade, collect the interest payments and see that your dividends on portfolio
securities are received and your rights exercised. It also uses the services of a high
quality custodian and registrar in order to make sure that your convenience
remains at the top of our mind.


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One call puts you in touch with a specialist who can provide you with information
you can use to make your own investment choices. They will provide you personal
assistance in buying and selling your fund units, provide fund information and
answer questions about your account status. Our Customer service centers are at
your service and our marketing team would be eager to hear your comments on our
schemes.


c   

In open-ended schemes, you can get your money back promptly at net asset value
related prices from the mutual fund itself.


c  c

You get regular information on the value of your investment in addition to

disclosure on the specific investments made by the mutual fund scheme.

cClick here>>cc c c c  c

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The SEBI (mutual Funds) Regulations 1993 define a mutual fund (mF) as a fund
established in the form of a trust by a sponsor to raise monies by the Trustees
through the sale of units to the public under one or more schemes for investing in
securities in accordance with these regulations.

These regulations have since been replaced by the SEBI (mutual Funds)
Regulations, 1996. The structure indicated by the new regulations is indicated as
under.c

A mutual fund comprises four separate entities, namely sponsor, mutual fund trust,
AmC and custodian. The sponsor establishes the mutual fund and gets it registered
with SEBI. c

The mutual fund needs to be constituted in the form of a trust and the instrument
of the trust should be in the form of a deed registered under the provisions of the
Indian Registration Act, 1908.c

The sponsor is required to contribute at least 40% of the minimum net worth (Rs.
10 crore) of the asset management company. The board of trustees manages the
mF and the sponsor executes the trust deeds in favour of the trustees. It is the job
of the mF trustees to see that schemes floated and managed by the AmC appointed
by the trustees are in accordance with the trust deed and SEBI guidelines. c

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 c

The discussion on investment objectives would not be complete without a

discussion on the risks that investing in a mutual fund entails.

At the cornerstone of investing is the basic principle that the greater the risk you
take, the greater the potential reward. Remember that the value of all financial
investments will fluctuate.

Typically, risk is defined as short-term price variability. But on a long-term basis,

risk is the possibility that your accumulated real capital will be insufficient to meet
your financial goals. And if you want to reach your financial goals, you must start
with an honest appraisal of your own personal comfort zone with regard to risk.
Individual tolerance for risk varies, creating a distinct "investment personality" for
each investor. Some investors can accept short-term volatility with ease, others
with near panic. So whether you consider your investment temperament to be
conservative, moderate or aggressive, you need to focus on how comfortable or
uncomfortable you will be as the value of your investment moves up or down.

Recognizing the type of investor you are will go a long way towards helping you
build a meaningful portfolio of investments that you can live with. Take the test
"Tolerance Questionnaire" to determine where your preferences lie. c
 c

c
mutual funds offer incredible flexibility in managing investment risk. Diversification
and Automatic Investing (SIP) are two key techniques you can use to reduce your
investment risk considerably and reach your long-term financial goals. c

     cc

6hen you invest in one mutual fund, you instantly spread your risk over a number
of different companies. You can also diversify over several different kinds of
securities by investing in different mutual funds, further reducing your potential
risk. Diversification is a basic risk management tool that you will want to use
throughout your lifetime as you rebalance your portfolio to meet your changing
needs and goals. Investors, who are willing to maintain a mix of equity shares,
bonds and money market securities have a greater chance of earning significantly
higher returns over time than those who invest in only the most conservative
investments. Additionally, a diversified approach to investing -- combining the
growth potential of equities with the higher income of bonds and the stability of
money markets -- helps moderate your risk and enhance your potential return.

  c  c
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The Unitholders of the Scheme can benefit by investing specific Rupee amounts
periodically, for a continuous period. mutual fund SIP allows the investors to invest
a fixed amount of Rupees every month or quarter for purchasing additional units of
the Scheme at NAV based prices. c

Here is an illustration using hypothetical figures indicating how the SIP can work for
investors:

Suppose an investor would like to invest Rs.1,000 under the Systematic Investment
Plan on a quarterly basis.cc

c
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 cc  cc  
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Initial 1000 10 100

Investment

1 1000 8.20 121.95

2 1000 7.40 135.14

3 1000 6.10 163.93

4 1000 5.40 185.19

5 1000 6.00 166.67

6 1000 8.20 121.95

7 1000 9.25 108.11

8 1000 10.00 100.00

9 1000 11.25 88.89

10 1000 13.40 74.63

11 1000 14.40 69.44

TOTAL 12,000 - 1,435.90

Average unit cost Rs 12,000/1,435.9 = Rs 8.36

Average unit price 109.6/12 = Rs 9.13

Unit price at beginning of next quarter Rs 14.90

market value of investment 1435.9 * 14.90= Rs 21,395/-

The investor liquidates his units and gets back Rs 21,395/-

Using the SIP strategy the investor can reduce his average cost per unit. The
investor gets the advantage of getting more units when the market is turned down.

All investments involve some form of risk. Even an insured bank account is subject
to the possibility that inflation will rise faster than your earnings, leaving you with
less real purchasing power than when you started (Rs. 1000 gets you less than it
got your father when he was your age). Consider these common types of risk and
evaluate them against potential rewards when you select an investment.

At times the prices or yields of all the securities in a particular market rise or fall
due to broad outside influences. 6hen this happens, the stock prices of both an
outstanding, highly profitable company and a fledgling corporation may be affected.
This change in price is due to "market risk".

Sometimes referred to as "loss of purchasing power." 6henever inflation sprints

forward faster than the earnings on your investment, you run the risk that you'll
actually be able to buy less, not more. Inflation risk also occurs when prices rise
faster than your returns.

In short, how stable is the company or entity to which you lend your money when
you invest? How certain are you that it will be able to pay the interest you are
promised, or repay your principal when the investment matures?

Changing interest rates affect both equities and bonds in many ways. Investors are
reminded that "predicting" which way rates will go is rarely successful. A diversified
portfolio can help in offseting these changes. c
 c
An industries' key asset is offen the personnel who run the business i.e. intellectual
properties of the key employees of the respective companies. Given the ever-
changing complexion of few industries and the high obsolescence levels, availability
of qualified, trained and motivated personnel is very critical for the success of
industries in few sectors. It is, therefore, necessary to attract key personnel and
also to retain them to meet the changing environment and challenges the sector
offers.

Failure or inability to attract/retain such qualified key personnel may impact the
prospects of the companies in the particular sector in which the fund invests.

A number of companies generate revenues in foreign currencies and may have

investments or expenses also denominated in foreign currencies. Changes in
exchange rates may, therefore, have a positive or negative impact on companies
which in turn would have an effect on the investment of the fund. c

c
The sectoral fund schemes, investments will be predominantly in equities of select
companies in the particular sectors. Accordingly, the NAV of the schemes are linked
to the equity performance of such companies and may be more volatile than a more
diversified portfolio of equities.

Changes in Government policy especially in regard to the tax benefits may impact
the business prospects of the companies leading to an impact on the investments
made by the fund.

c
The first step to investing in mutual Fund is to define the objective of investing. You
should clearly lay down the purpose for which you desire to invest. There are
several schemes tailor made to meet certain personal financial goals (children's
education, marriage, retirement etc.) which can be availed of. You should define
the tenure of investment and the risk appetite you have. Thereafter, you can select
a fund type that best meets your need i.e. income schemes, liquid schemes, tax
saving schemes, equity schemes etc. Given the plethora of fund options available to
you, you can then choose the particular fund that you are comfortable with.cc
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 ÷c The track record of performance of schemes over the last few years managed
by the fund
÷c Quality of management and administration
÷c Parentage of the mutual Fund
÷c Quality and adequacy of disclosures
÷c Service levels
÷c The price at which you can enter/exit (i.e. entry load / exit load) the scheme
and its impact on overall return
÷c The market price of the units of the scheme (where available) to see the
discount/premium that the market assigns to the stated NAV of the scheme
÷c Independent rating of the schemes, if available

You could be investing in a mutual fund either at the initial stage when the mutual
fund approaches the market through an offer document route or at a subsequent
stage.

If you choose to invest at the initial stage, the offer document would detail the
schemes being offered and the manner of investing. The manner is usually similar
to that of investing any public issue of any security (equity/debt).

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1.c A close ended scheme. If the desired units are of a close-ended scheme, then
the investor would be able to purchase them at the stock exchange where
the mF has listed them. This purchase would resemble the purchase of an
equity share wherein the investor would pay the quoted price of the unit as
well as a brokerage for the purchase transaction. In the case of a close
ended scheme, the sale also is effected through the stock exchange
mechanism and resembles the sale of equity share.The pricing for the
transaction, as was mentioned earlier, is driven by the price the units quote.
This is driven by the NAV ( Net Asset Value) of the scheme. The price,
however, may be either at a discount or premium to the NAV.

2.c Purchasing a unit in a open-ended scheme is different as there is no

exchange where these units are traded. Their price reflects the NAV of the
scheme. The mutual fund in an open-ended scheme sells these units to the
investor at the NAV (plus a sale / entry load).

Selling units in an open-ended scheme is similar to the way they are purchased. It
is the mutual fund that buys back the units and at a price based on the NAV. The
actual price is the NAV less the exit load. The exit load is similar in concept to the
entry load.cc
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c 
c
ccc
 cc
c
 cc
c

 cc
c
Your financial consultant who gives professional advice on the fund's investments
and to supervise the management of its assets. c

cc

A method of equated monthly payments over the life of a loan. Payments usually
are paid monthly but can be paid annually, quarterly, or on any other schedule. In
the early part of a loan, repayment of interest is higher than that of principal. This
relationship is reversed at the end of the loan.

cc

6hen an investment increases in value, it appreciates. For example, a equity share

whose price goes from Rs. 20/- to Rs. 25/- has appreciated by Rs. 5/-.

cc

The practice of buying and selling an interlisted stock on different exchanges in

order to profit from minute differences in price between the two markets.

cc

Property and resources, such as cash and investments, comprise a person's assets;
i.e., anything that has value and can be traded. Examples include stocks, bonds,
real estate, bank accounts, and jewellery.

c cc

6hen you divide your money among various types of investments, such as stocks,
bonds, and short-term investments (also known as "instruments"), you are
allocating your assets. The way in which your money is divided is called your asset
allocation.


cc ccc

The price at which a mutual fund's shares can be purchased. The asked or offering
price means the current net asset value (NAV) per share plus sales charge, if any.
For a no-load fund, the asked price is the same as the NAV.

c c!
cc
A fund that spreads its portfolio among a wide variety of investments, including
domestic and foreign stocks and bonds, government securities, gold bullion and real
estate stocks. This gives small investors far more diversification than they could get
allocating money on their own. Some of these funds keep the proportions allocated
between different sectors relatively constant, while others alter the mix as market
conditions change.


c 
cc

A service offered by most mutual funds whereby income, dividends and capital gain
distributions are automatically invested into the fund by buying additional shares
and thus building up holdings through the effects of compounding.

 
ccc

This is the hypothetical rate of return, that, if the fund achieved it over a year's
time, would produce the same cumulative total return if the fund performed
consistently over the entire period. A total return is expressed in a percentage and
tells you how much money you have earned or lost on an investment over time,
assuming that all dividends and capital gains are reinvested.

"c˜cc

A financial statement showing the nature and amount of a company's assets,

liabilities and shareholders' equity.

"
c!
cc

A mutual fund that maintains a balanced portfolio, generally 40% bonds and 60%
equity.

"cc

The exchange of goods and services for other goods and services without the use of
money.

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A phrase used to describe differences in bond yields, with one basis point
representing one-hundredth of a percentage point. Thus if Bond X yields 8.5 per
cent and Bond Y 8.75 per cent, the difference is 25 basis points. c

"
cc˜ccc

The price at which a mutual fund's shares are redeemed (bought back) by the fund.
The bid or redemption price means the current net asset value per share, less any
redemption fee or back-end load.
"c#cc

A share in a large, safe, prestigious company, of the highest class among

stockmarket investments. A blue-chip company would be called thus by being well-
known, having a large paid-up capital, a good track record of dividend payments
and skilled management.

"
cc$ cc

A committee elected by the shareholders of a company, empowered to act on their

behalf in the management of company affairs. Directors are normally elected each
year at the annual meeting. c

"
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c!
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A mutual fund whose portfolio consists primarily of corporate and government

securities. These funds generally emphasize income rather than growth.c

"
ccc

System of evaluating the probability of whether a bond issuer will default. CRISIL,
ICRA, CARE and other rating agencies, analyze the financial stability of both
corporate and state government debt issuers. Ratings range from AAA (extremely
unlikely to default) to D (likely to default). mutual funds generally restrict their
bond purchases to issues of certain quality ratings, which are specified in their
prospectuses.c

#cc

This is the amount of money you have invested. 6hen your investing objective is
capital preservation, your priority is trying not to lose any money. 6hen your
investing objective is capital growth, your priority is trying to make your initial
investment grow in value. c

#c c!
cc

A mutual fund that seeks maximum capital appreciation through the use of
investment techniques involving greater than ordinary risk, such as borrowing
money in order to provide leverage and high portfolio turnover.c

#c&cc

Profit from a sale of an investment constitutes a capital gain. For example, if you
bought a share of stock for Rs. 5/- and later sold it for Rs. 7/-, you would have a
capital gain of Rs. 2/-. c

#c& c$  cc

Payments (usually annually) to mutual fund shareholders of gains realized on the
sale of portfolio securities.c

#c&'cc

A rise in market value of a mutual fund's securities, reflected in its NAV per share.
This is a specific long-term objective of many mutual funds.c

#cc$ cc

Interest-bearing, short-term debt instrument mainly issued by Financial

institutions.c

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c)c!
cc

A mutual fund that offers a limited number of shares. They are traded in the
securities markets. Price is determined by supply and demand. Unlike open-ended
mutual funds, closed-ended funds do not redeem their shares.c

#c˜cc

This is extra security provided by a borrower to back up his/her intention to repay a

loan. c

#

ccc

Short-term, unsecured promissory notes with maturities shorter than 3 months.

They are issued by corporations to fund short-term credit needs.c

#

 cc

The broker's or agent's fee for buying or selling securities for a client. The fee is
usually based on a percentage of the transaction's market value. c

#

cc

6hen you deposit money in a bank, it earns interest. 6hen that interest also
begins to earn interest, the result is compound interest. Compounding occurs if
bond income or dividends from stocks or mutual funds are reinvested. Because of
compounding, money has the potential to grow much faster. c

# 
cc

The 'consideration' is the total purchase or sale amount associated with a

transaction. The amount you 'pay' or 'receive'. It may also be the basis for working
out the commission, taxes and any other charges you are asked to pay.cc
# c
cc

See Exchange Priviledgec

# 
cc

The bank or trust company that maintains a mutual fund's assets, including its
portfolio of securities or some record of them. Provides safekeeping of securities
but has no role in portfolio management.c

$cc

The shortfall between government revenues and budgetary spending in any given
year. A surplus occurs when annual revenues exceed expenditures. c

$cc

An investment contract based on an underlying investment called an "instrument."

The most common type of derivative is an option contract, which involves the right
to buy or sell the underlying instrument at an agreed price. Futures contracts are
also derivatives. c

$ cc

The policy of spreading investments among a range of different securities to reduce

the risks inherent in investing.c

$

cc

6hen companies pay part of their profits to shareholders, those profits are called
dividends. A mutual fund's dividend is money paid to shareholders from investment
income the fund has earned. The amount of each share's dividend depends on how
well the company does. c

Ý
 
cc

Assigning or transferring a lien to another person is accomplished through the use

of an endorsement. The words "PAY TO THE ORDER OF" and then the name of the
person to whom the lien is being assigned to, is written. If there is not enough
space on the original note to write an endorsement, it is written on a separate piece
of paper that is permanently affixed to the original note. This is called an allonge. c

Ýc
cc

The right to transfer investments from one fund into another, generally within the
same fund group, at nominal cost.c
Ý($

c$cc

The date on which a fund's Net Asset Value (NAV) will fall by an amount equal to
the dividend and/or capital gains distribution (although market movements may
alter the fund's closing NAV somewhat). most publications that list closing NAVs
place an "X" after a fund's name on its Ex-Dividend Date.c

Ý ccc

The ratio of total expenses to net assets of the fund. Expenses include management
fees, the cost of shareholder mailings and other administrative expenses. The ratio
is listed in a fund's prospectus. Expense ratios may be a function of a fund's size
rather than of its success in controlling expenses.c

!c*cc

The face value is the term used to describe the value of a bond in terms of what the
company which issued the bond will actually repay when the loan matures. It's
sometimes described as nominal or par value. c

! c+cc

An accounting period consisting of 12 consecutive months.c

&'c!
cc

A mutual fund whose primary investment objective is long-term growth of capital.

It invests principally in common stocks with significant growth potential.c


c!
cc

A mutual fund that primarily seeks current income rather than growth of capital. It
will tend to invest in stocks and bonds that normally pay high dividends and
interest.c


c!
cc

A mutual fund that seeks to mirror general stock-market performance by matching

its portfolio to a broad-based index (e.g. BSE Sensex).c

cc

6hen the price of goods and services rises, the result is called inflation. This means
that things you buy today at one price are likely to cost more in the future. c

 c cc
An institutional investor is a professional money manager whose job it is to put
money into shares and other assets on behalf of private investors who entrust them
with money via their pension and life insurance funds. c

c!
cc

A fund that invests in securities traded in markets outside India.c

 
c
 cc

See Advisorc

 
c ,cc

The financial goal (long-term growth, current income, etc.) that an investor or a
mutual fund pursues.c

 
c˜c#cc

This is the total number of shares a company has made publicly available multiplied
by the total nominal value of the shares. A company may have 10 million shares in
issue, each with a nominal value of Re. 1. So the issued share capital is Rs. 10
million. c

dc"
cc

A speculative bond with higher credit risk.c

à cc

The person who makes lease payments. He has right of possession and use of a
property under the terms of a lease. c

à cc

The person who receives lease payments. He leases property. c

à" cc

LIBOR stands for London Inter Bank Offer Rate. It's the rate of interest at which
banks offer to lend money to one another in the so-called wholesale money
markets in the City of London. money can be borrowed overnight or for a period of
in excess of five years. The most often quoted rate is for three month money. '3
month LIBOR' tends to be used as a yardstick for lenders involved in high value
transactions. They tend to quote rates as 'points above LIBOR'. So if 3 month
LIBOR were (say) six per cent, a bank may choose to lend to another bank at (say)
6 and a quarter per cent. e.g. a quarter per cent above 3 month LIBOR. c

àcc

A type of security instrument (i.e., a tax lien), placed against property, making it
security for the payment of a debt, judgment, mortgage, or taxes. If the lien is not
paid, the lien holder has the right to confiscate the property in order to recover the
money that was loaned. c

à-
cc

If you can generally buy or sell an asset quickly, or convert it to cash quickly, then
that asset is considered "liquid." c

à
cc

A sales charge or commission assessed by certain mutual funds ("load funds") to

cover their selling costs.c

à
c!
cc

A mutual fund that levies a sales charge, which is included in the offering price of
its shares, and is sold by a broker or salesman. A front-end load is the fee charged
when buying into a fund; a back-end load is the fee charged when getting out of a
fund. See Redemption Fee`c

à'(à
c!
cc

A mutual funds that charges small commission, usually 1.5% or less, for the
purchase of its shares.c

)
c!cc

The amount that an Asset management Company (AmC) charges for management
of the fund's portfolio. In general, this fee ranges from 0.5% to 1.25% of the fund's
asset value.

)cc

A public place where the buying and selling of all types of bonds, stocks and other
securities takes place. A stock exchange is a market.

)cc
This is the length of time (term) before a debt instrument, such as a bond, is due to
be repaid in full.

)c)c!
cc

A mutual fund that aims to pay money market interest rates. This is accomplished
by investing in safe, highly liquid securities, including certificates of deposit,
commercial paper, and Government securities. money funds make these high
interest securities available to the average investor seeking immediate income and
high investment safety.c

)cc

A legal instrument given by a borrower to the lender entitling the lender to take
over pledged property if conditions of the loan are not met.

c c*cc

Also known as NAV, this is the unit price (or rupee value) of one unit of a mutual
fund. NAV is calculated at the end of every business day. It is calculated by adding
up the value of all the securities and cash in the mutual fund's portfolio (its assets),
subtracting the fund's liabilities, and dividing that number by the number of units
that the fund has issued. It does not include a sales charge. The NAV increases (or
decreases) when the value of the mutual fund's holdings increase (or decrease).

c.cc

A person's net worth is equal to the total value of all possessions, such as a house,
stocks, bonds, and other securities, minus all outstanding debts, such as mortgage
and revolving credit lines. c

(à
c!
cc

A commission-free mutual fund that sells its units at NAV, either directly to the
public or through an affiliated distributor, without the addition of a sales charge.c

c$
cc

See Prospectuscc

cc

A device used to speculate or hedge in securities markets. Buying a "call" option

gives an investor the right to buy 100 shares of a stock at a certain price within a
specified time; buying a "put" option allows an investor to sell a stock under the
same conditions. c


cc

A bond premium is the amount by which a bond sells above its par (face) value. For
insurance, the premium is the amount you pay for your insurance policy.c

%Ý ccc

This is the price of a stock divided by its earnings per share. This ratio gives an
investor an idea of how much they are paying for a particular company's earning
power. A trailing P/E refers to a ratio that is based on earnings from the latest year,
while a forward P/E uses an analyst's forecast of next year's earnings. For instance,
a stock selling for Rs. 20 a share that earned Re. 1 last year has a trailing P/E of
20. If the same stock has projected earnings of Rs. 2 next year, then it has a
forward P/E of 10. c

c˜cc

Price stability protects the original amount you put into an investment. A mutual
fund's price stability is seen in changes in its net asset value over time. c

  cc

An official document that each investment company must publish, describing the
mutual fund and offering its shares for sale. It contains information that has been
mandatorily required by SEBI.c

cccc

The total proceeds derived from the investment per rupee initially invested.
Proceeds must be defined broadly to include both cash distributions and capital
gains. The rate of return is expressed as a percentage. c


c$cc

The date the fund determines who its unitholders are; "unitholders of record" who
will receive the fund's income dividend and/or net capital gains distribution. c



cc

Preferred shares or bonds that give the issuing corporation an option to repurchase
securities at a stated price. These are also known as callable securities. c



c!cc

A fee charged by a limited number of funds for redeeming, or buying back, fund
units.c


ccc

The price at which a mutual fund's units are redeemed (bought back) by the fund.
The redemption price is usually equal to the current NAV per unit.c

c!
cc

A mutual fund that concentrates its investments within a specific geographic area,
usually the fund's local region. The objective is to take advantage of regional
growth potential before the national investment community does.c

 cc

See Transfer Agentsc

 
c$cc

The date on which a share's dividend and/or capital gains will be reinvested (if
requested) in additional fund shares.c

 
ccc

A service that most mutual funds offer whereby a shareholder¶s income dividends
and capital gains distributions are automatically reinvested in additional shares. See
Automatic Reinvestment`c

c# c cc˜?cc

The technique of investing a fixed sum at regular intervals regardless of stock

market movements. This reduces average share costs to the investor, who acquires
more shares in periods of lower securities prices and fewer shares in periods of high
prices. In this way, investment risk is spread over time.c

˜c!
cc

A fund that operates several specialized industries sectors portfolios under one
umbrella. These sectors could be FmCG or Technology.c

˜ cc

This is another word for stocks, bonds, and short-term investments. c

˜cc
A process under which non-marketable assets, such as mortgages, automobile
leases and credit card receivables, are converted into marketable securities that
can be traded among investors. c

˜c!
c˜c˜c!
?c

A mutual fund specializing in the securities of a particular industry or group of

industries or special types of securities.c

˜
cc

The difference between the rates at which money is deposited in a financial

institution and the higher rates at which the money is lent out. Also, the difference
between the bid and ask price for a security.c

˜ 
cc

A financial contribution by government (including any form of income or price

support) that also confers a benefit to the recipient (i.e., producers of goods or
services or buyers of goods). many types of government practices constitute a
financial contribution, including traditional forms of subsidies such as grants and
loans, as well as foregone revenues such as tax credits. c

˜ 
c 
ccc

many mutual funds offer investment programs whereby unitholders can invest. The
Unitholders of the scheme can benefit by investing specific Rupee amounts
periodically, for a continuous period. The SIP allows the investors to invest a fixed
amount of Rupees every month or quarter for purchasing additional units of the
scheme at NAV based prices. c

˜ 
c.
'c cc

many mutual funds offer withdrawal programs whereby unitholders receive

payments from their investments. These payments are usually drawn from the
fund's dividend income and capital gain distributions, if any, and from principal only
when necessary.c

—ccc

The performance of an investment, including yield (dividends, interest, capital

gains) as well as changes in per unit price, calculated over a designated period of
time. Assuming reinvestment of capital gains and income distributions, multiply the
number of units owned by the net asset value per unit. Subtract the original
investment from the result. Then divide that figure by the original investment and
multiply by 100. (Assuming your units are now worth Rs. 8,000 and the investment
was Rs. 5,000/-, divide Rs. 3,000/- by Rs. 5,000/- getting 0.6. multiplied by 100-
percentage increase, or total return, was 60%.) Also see Yield`cc

—
c$cc

The actual date on which your shares were purchased or sold. The transaction price
is determined by the closing Net Asset Value on that date.c

— c c cRegistrar?c

The organization that mutual funds employ to prepare and maintain records relating
to unitholder accounts. Some mutual fund groups operate in-house transfer
agencies.c

— cc

One designated to hold property for another, pending the performance of an

obligation. In a deed of trust state, the trustee is often the title company that
handled the property sale closing. c


'cc

The organization that acts as the distributor of a mutual fund¶s units to

broker/dealers and the public.c

*ccc

This is where a company merges or takes over other companies in the same supply
chain. If a shoe manufacturer, takes over his supplier it would be vertical
integration.c

*cc

In investing, volatility refers to the ups and downs of the price of an investment.
The greater the ups and downs, the more volatile the investment. c

*ccc

A flexible plan for capital accumulation, involving no specified time frame or total
sum to be invested.c

+
cc

Income or return received from an investment, usually expressed as a percentage

of market prices, over a designated period. For a mutual fund, yield is interest or
dividend before any gain or loss in the price per share. See Total Return`c
’c#c"
cc

Bond sold at a fraction of its face value. It appreciates gradually, but no periodic
interest payments are made. Earnings accumulate until maturity, when the bond is
redeemable at full face value.

˜
ccc

c 
c
ccc
 cc
c
 cc
c

 cc
c
Your financial consultant who gives professional advice on the fund's investments
and to supervise the management of its assets. c

cc

A method of equated monthly payments over the life of a loan. Payments usually
are paid monthly but can be paid annually, quarterly, or on any other schedule. In
the early part of a loan, repayment of interest is higher than that of principal. This
relationship is reversed at the end of the loan.

cc

6hen an investment increases in value, it appreciates. For example, a equity share

whose price goes from Rs. 20/- to Rs. 25/- has appreciated by Rs. 5/-.

cc

The practice of buying and selling an interlisted stock on different exchanges in

order to profit from minute differences in price between the two markets.

cc

Property and resources, such as cash and investments, comprise a person's assets;
i.e., anything that has value and can be traded. Examples include stocks, bonds,
real estate, bank accounts, and jewellery.

c cc

6hen you divide your money among various types of investments, such as stocks,
bonds, and short-term investments (also known as "instruments"), you are
allocating your assets. The way in which your money is divided is called your asset
allocation.
 
cc ccc

The price at which a mutual fund's shares can be purchased. The asked or offering
price means the current net asset value (NAV) per share plus sales charge, if any.
For a no-load fund, the asked price is the same as the NAV.

c c!
cc

A fund that spreads its portfolio among a wide variety of investments, including
domestic and foreign stocks and bonds, government securities, gold bullion and real
estate stocks. This gives small investors far more diversification than they could get
allocating money on their own. Some of these funds keep the proportions allocated
between different sectors relatively constant, while others alter the mix as market
conditions change.


c 
cc

A service offered by most mutual funds whereby income, dividends and capital gain
distributions are automatically invested into the fund by buying additional shares
and thus building up holdings through the effects of compounding.

 
ccc

This is the hypothetical rate of return, that, if the fund achieved it over a year's
time, would produce the same cumulative total return if the fund performed
consistently over the entire period. A total return is expressed in a percentage and
tells you how much money you have earned or lost on an investment over time,
assuming that all dividends and capital gains are reinvested.

"c˜cc

A financial statement showing the nature and amount of a company's assets,

liabilities and shareholders' equity.

"
c!
cc

A mutual fund that maintains a balanced portfolio, generally 40% bonds and 60%
equity.

"cc

The exchange of goods and services for other goods and services without the use of
money.

"  ccc
A phrase used to describe differences in bond yields, with one basis point
representing one-hundredth of a percentage point. Thus if Bond X yields 8.5 per
cent and Bond Y 8.75 per cent, the difference is 25 basis points. c

"
cc˜ccc

The price at which a mutual fund's shares are redeemed (bought back) by the fund.
The bid or redemption price means the current net asset value per share, less any
redemption fee or back-end load.

"c#cc

A share in a large, safe, prestigious company, of the highest class among

stockmarket investments. A blue-chip company would be called thus by being well-
known, having a large paid-up capital, a good track record of dividend payments
and skilled management.

"
cc$ cc

A committee elected by the shareholders of a company, empowered to act on their

behalf in the management of company affairs. Directors are normally elected each
year at the annual meeting. c

"
%
c!
cc

A mutual fund whose portfolio consists primarily of corporate and government

securities. These funds generally emphasize income rather than growth.c

"
ccc

System of evaluating the probability of whether a bond issuer will default. CRISIL,
ICRA, CARE and other rating agencies, analyze the financial stability of both
corporate and state government debt issuers. Ratings range from AAA (extremely
unlikely to default) to D (likely to default). mutual funds generally restrict their
bond purchases to issues of certain quality ratings, which are specified in their
prospectuses.c

#cc

This is the amount of money you have invested. 6hen your investing objective is
capital preservation, your priority is trying not to lose any money. 6hen your
investing objective is capital growth, your priority is trying to make your initial
investment grow in value. c

#c c!
cc
A mutual fund that seeks maximum capital appreciation through the use of
investment techniques involving greater than ordinary risk, such as borrowing
money in order to provide leverage and high portfolio turnover.c

#c&cc

Profit from a sale of an investment constitutes a capital gain. For example, if you
bought a share of stock for Rs. 5/- and later sold it for Rs. 7/-, you would have a
capital gain of Rs. 2/-. c

#c& c$  cc

Payments (usually annually) to mutual fund shareholders of gains realized on the

sale of portfolio securities.c

#c&'cc

A rise in market value of a mutual fund's securities, reflected in its NAV per share.
This is a specific long-term objective of many mutual funds.c

#cc$ cc

Interest-bearing, short-term debt instrument mainly issued by Financial

institutions.c

# 
(

c)c!
cc

A mutual fund that offers a limited number of shares. They are traded in the
securities markets. Price is determined by supply and demand. Unlike open-ended
mutual funds, closed-ended funds do not redeem their shares.c

#c˜cc

This is extra security provided by a borrower to back up his/her intention to repay a

loan. c

#

ccc

Short-term, unsecured promissory notes with maturities shorter than 3 months.

They are issued by corporations to fund short-term credit needs.c

#

 cc

The broker's or agent's fee for buying or selling securities for a client. The fee is
usually based on a percentage of the transaction's market value. c
#

cc

6hen you deposit money in a bank, it earns interest. 6hen that interest also
begins to earn interest, the result is compound interest. Compounding occurs if
bond income or dividends from stocks or mutual funds are reinvested. Because of
compounding, money has the potential to grow much faster. c

# 
cc

The 'consideration' is the total purchase or sale amount associated with a

transaction. The amount you 'pay' or 'receive'. It may also be the basis for working
out the commission, taxes and any other charges you are asked to pay.cc

# c
cc

See Exchange Priviledgec

# 
cc

The bank or trust company that maintains a mutual fund's assets, including its
portfolio of securities or some record of them. Provides safekeeping of securities
but has no role in portfolio management.c

$cc

The shortfall between government revenues and budgetary spending in any given
year. A surplus occurs when annual revenues exceed expenditures. c

$cc

An investment contract based on an underlying investment called an "instrument."

The most common type of derivative is an option contract, which involves the right
to buy or sell the underlying instrument at an agreed price. Futures contracts are
also derivatives. c

$ cc

The policy of spreading investments among a range of different securities to reduce

the risks inherent in investing.c

$

cc

6hen companies pay part of their profits to shareholders, those profits are called
dividends. A mutual fund's dividend is money paid to shareholders from investment
income the fund has earned. The amount of each share's dividend depends on how
well the company does. c
Ý
 
cc

Assigning or transferring a lien to another person is accomplished through the use

of an endorsement. The words "PAY TO THE ORDER OF" and then the name of the
person to whom the lien is being assigned to, is written. If there is not enough
space on the original note to write an endorsement, it is written on a separate piece
of paper that is permanently affixed to the original note. This is called an allonge. c

Ýc
cc

The right to transfer investments from one fund into another, generally within the
same fund group, at nominal cost.c

Ý($

c$cc

The date on which a fund's Net Asset Value (NAV) will fall by an amount equal to
the dividend and/or capital gains distribution (although market movements may
alter the fund's closing NAV somewhat). most publications that list closing NAVs
place an "X" after a fund's name on its Ex-Dividend Date.c

Ý ccc

The ratio of total expenses to net assets of the fund. Expenses include management
fees, the cost of shareholder mailings and other administrative expenses. The ratio
is listed in a fund's prospectus. Expense ratios may be a function of a fund's size
rather than of its success in controlling expenses.c

!c*cc

The face value is the term used to describe the value of a bond in terms of what the
company which issued the bond will actually repay when the loan matures. It's
sometimes described as nominal or par value. c

! c+cc

An accounting period consisting of 12 consecutive months.c

&'c!
cc

A mutual fund whose primary investment objective is long-term growth of capital.

It invests principally in common stocks with significant growth potential.c


c!
cc

A mutual fund that primarily seeks current income rather than growth of capital. It
will tend to invest in stocks and bonds that normally pay high dividends and
interest.c

c!
cc

A mutual fund that seeks to mirror general stock-market performance by matching

its portfolio to a broad-based index (e.g. BSE Sensex).c

cc

6hen the price of goods and services rises, the result is called inflation. This means
that things you buy today at one price are likely to cost more in the future. c

 c cc

An institutional investor is a professional money manager whose job it is to put

money into shares and other assets on behalf of private investors who entrust them
with money via their pension and life insurance funds. c

c!
cc

A fund that invests in securities traded in markets outside India.c

 
c
 cc

See Advisorc

 
c ,cc

The financial goal (long-term growth, current income, etc.) that an investor or a
mutual fund pursues.c

 
c˜c#cc

This is the total number of shares a company has made publicly available multiplied
by the total nominal value of the shares. A company may have 10 million shares in
issue, each with a nominal value of Re. 1. So the issued share capital is Rs. 10
million. c

dc"
cc

A speculative bond with higher credit risk.c

à cc

The person who makes lease payments. He has right of possession and use of a
property under the terms of a lease. c

à cc
The person who receives lease payments. He leases property. c

à" cc

LIBOR stands for London Inter Bank Offer Rate. It's the rate of interest at which
banks offer to lend money to one another in the so-called wholesale money
markets in the City of London. money can be borrowed overnight or for a period of
in excess of five years. The most often quoted rate is for three month money. '3
month LIBOR' tends to be used as a yardstick for lenders involved in high value
transactions. They tend to quote rates as 'points above LIBOR'. So if 3 month
LIBOR were (say) six per cent, a bank may choose to lend to another bank at (say)
6 and a quarter per cent. e.g. a quarter per cent above 3 month LIBOR. c

àcc

A type of security instrument (i.e., a tax lien), placed against property, making it
security for the payment of a debt, judgment, mortgage, or taxes. If the lien is not
paid, the lien holder has the right to confiscate the property in order to recover the
money that was loaned. c

à-
cc

If you can generally buy or sell an asset quickly, or convert it to cash quickly, then
that asset is considered "liquid." c

à
cc

A sales charge or commission assessed by certain mutual funds ("load funds") to

cover their selling costs.c

à
c!
cc

A mutual fund that levies a sales charge, which is included in the offering price of
its shares, and is sold by a broker or salesman. A front-end load is the fee charged
when buying into a fund; a back-end load is the fee charged when getting out of a
fund. See Redemption Fee`c

à'(à
c!
cc

A mutual funds that charges small commission, usually 1.5% or less, for the
purchase of its shares.c

)
c!cc

The amount that an Asset management Company (AmC) charges for management
of the fund's portfolio. In general, this fee ranges from 0.5% to 1.25% of the fund's
asset value.
)cc

A public place where the buying and selling of all types of bonds, stocks and other
securities takes place. A stock exchange is a market.

)cc

This is the length of time (term) before a debt instrument, such as a bond, is due to
be repaid in full.

)c)c!
cc

A mutual fund that aims to pay money market interest rates. This is accomplished
by investing in safe, highly liquid securities, including certificates of deposit,
commercial paper, and Government securities. money funds make these high
interest securities available to the average investor seeking immediate income and
high investment safety.c

)cc

A legal instrument given by a borrower to the lender entitling the lender to take
over pledged property if conditions of the loan are not met.

c c*cc

Also known as NAV, this is the unit price (or rupee value) of one unit of a mutual
fund. NAV is calculated at the end of every business day. It is calculated by adding
up the value of all the securities and cash in the mutual fund's portfolio (its assets),
subtracting the fund's liabilities, and dividing that number by the number of units
that the fund has issued. It does not include a sales charge. The NAV increases (or
decreases) when the value of the mutual fund's holdings increase (or decrease).

c.cc

A person's net worth is equal to the total value of all possessions, such as a house,
stocks, bonds, and other securities, minus all outstanding debts, such as mortgage
and revolving credit lines. c

(à
c!
cc

A commission-free mutual fund that sells its units at NAV, either directly to the
public or through an affiliated distributor, without the addition of a sales charge.c

c$
cc

See Prospectuscc
 cc

A device used to speculate or hedge in securities markets. Buying a "call" option

gives an investor the right to buy 100 shares of a stock at a certain price within a
specified time; buying a "put" option allows an investor to sell a stock under the
same conditions. c



cc

A bond premium is the amount by which a bond sells above its par (face) value. For
insurance, the premium is the amount you pay for your insurance policy.c

%Ý ccc

This is the price of a stock divided by its earnings per share. This ratio gives an
investor an idea of how much they are paying for a particular company's earning
power. A trailing P/E refers to a ratio that is based on earnings from the latest year,
while a forward P/E uses an analyst's forecast of next year's earnings. For instance,
a stock selling for Rs. 20 a share that earned Re. 1 last year has a trailing P/E of
20. If the same stock has projected earnings of Rs. 2 next year, then it has a
forward P/E of 10. c

c˜cc

Price stability protects the original amount you put into an investment. A mutual
fund's price stability is seen in changes in its net asset value over time. c

  cc

An official document that each investment company must publish, describing the
mutual fund and offering its shares for sale. It contains information that has been
mandatorily required by SEBI.c

cccc

The total proceeds derived from the investment per rupee initially invested.
Proceeds must be defined broadly to include both cash distributions and capital
gains. The rate of return is expressed as a percentage. c


c$cc

The date the fund determines who its unitholders are; "unitholders of record" who
will receive the fund's income dividend and/or net capital gains distribution. c



cc
Preferred shares or bonds that give the issuing corporation an option to repurchase
securities at a stated price. These are also known as callable securities. c



c!cc

A fee charged by a limited number of funds for redeeming, or buying back, fund
units.c



ccc

The price at which a mutual fund's units are redeemed (bought back) by the fund.
The redemption price is usually equal to the current NAV per unit.c

c!
cc

A mutual fund that concentrates its investments within a specific geographic area,
usually the fund's local region. The objective is to take advantage of regional
growth potential before the national investment community does.c

 cc

See Transfer Agentsc

 
c$cc

The date on which a share's dividend and/or capital gains will be reinvested (if
requested) in additional fund shares.c

 
ccc

A service that most mutual funds offer whereby a shareholder¶s income dividends
and capital gains distributions are automatically reinvested in additional shares. See
Automatic Reinvestment`c

c# c cc˜?cc

The technique of investing a fixed sum at regular intervals regardless of stock

market movements. This reduces average share costs to the investor, who acquires
more shares in periods of lower securities prices and fewer shares in periods of high
prices. In this way, investment risk is spread over time.c

˜c!
cc

A fund that operates several specialized industries sectors portfolios under one
umbrella. These sectors could be FmCG or Technology.c
˜ cc

This is another word for stocks, bonds, and short-term investments. c

˜cc

A process under which non-marketable assets, such as mortgages, automobile

leases and credit card receivables, are converted into marketable securities that
can be traded among investors. c

˜c!
c˜c˜c!
?c

A mutual fund specializing in the securities of a particular industry or group of

industries or special types of securities.c

˜
cc

The difference between the rates at which money is deposited in a financial

institution and the higher rates at which the money is lent out. Also, the difference
between the bid and ask price for a security.c

˜ 
cc

A financial contribution by government (including any form of income or price

support) that also confers a benefit to the recipient (i.e., producers of goods or
services or buyers of goods). many types of government practices constitute a
financial contribution, including traditional forms of subsidies such as grants and
loans, as well as foregone revenues such as tax credits. c

˜ 
c 
ccc

many mutual funds offer investment programs whereby unitholders can invest. The
Unitholders of the scheme can benefit by investing specific Rupee amounts
periodically, for a continuous period. The SIP allows the investors to invest a fixed
amount of Rupees every month or quarter for purchasing additional units of the
scheme at NAV based prices. c

˜ 
c.
'c cc

many mutual funds offer withdrawal programs whereby unitholders receive

payments from their investments. These payments are usually drawn from the
fund's dividend income and capital gain distributions, if any, and from principal only
when necessary.c

—ccc
The performance of an investment, including yield (dividends, interest, capital
gains) as well as changes in per unit price, calculated over a designated period of
time. Assuming reinvestment of capital gains and income distributions, multiply the
number of units owned by the net asset value per unit. Subtract the original
investment from the result. Then divide that figure by the original investment and
multiply by 100. (Assuming your units are now worth Rs. 8,000 and the investment
was Rs. 5,000/-, divide Rs. 3,000/- by Rs. 5,000/- getting 0.6. multiplied by 100-
percentage increase, or total return, was 60%.) Also see Yield`cc

—
c$cc

The actual date on which your shares were purchased or sold. The transaction price
is determined by the closing Net Asset Value on that date.c

— c c cRegistrar?c

The organization that mutual funds employ to prepare and maintain records relating
to unit holder accounts. Some mutual fund groups operate in-house transfer
agencies.c

— cc

One designated to hold property for another, pending the performance of an

obligation. In a deed of trust state, the trustee is often the title company that
handled the property sale closing. c


'cc

The organization that acts as the distributor of a mutual fund¶s units to

broker/dealers and the public.c

*ccc

This is where a company merges or takes over other companies in the same supply
chain. If a shoe manufacturer, takes over his supplier it would be vertical
integration.c

*cc

In investing, volatility refers to the ups and downs of the price of an investment.
The greater the ups and downs, the more volatile the investment. c

*ccc

A flexible plan for capital accumulation, involving no specified time frame or total
sum to be invested.c
+
cc

Income or return received from an investment, usually expressed as a percentage

of market prices, over a designated period. For a mutual fund, yield is interest or
dividend before any gain or loss in the price per share. See Total Return`c

’c#c"
cc

Bond sold at a fraction of its face value. It appreciates gradually, but no periodic
interest payments are made. Earnings accumulate until maturity, when the bond is
redeemable at full face value.

Income and expenses are two sides of the same coin. And one liability that you
cannot afford to turn a blind eye to is income tax. 6hile you cannot evade paying
taxes, the best you can do is to minimise their effect on your wallet.

6hat are the Tax Slabs ?

The basic exemption limit for personal income tax is:
Rs 150,000.
Rs 180,000 for resident women below the age of 65 years;
Rs 225,000 for resident individuals of the age of 65 years and above;

Income tax rates for the tax year 2008-09 applicable for individuals, Hindu
Undivided Families, Association of Persons and Body of Individuals, can be
tabulated as follows:

—c
—c
cc  cc
Up to Rs 150,000 (for individuals
other than women and senior citizens)
Rs 180,000 (for women below 65
Nil
years of age).
Rs 225,000 (for resident individuals of
65 years or above)
150,001 ± 300,000 10%
300,001 ± 500,000 20%
500,001 upwards* 30%
* Surcharge of 10 per cent of the total tax
liability is applicable where total income
exceeds Rs 1,000,000
/

×c Education cess is applicable at a rate of 3 per cent on income tax (inclusive

 of surcharge, if any) c
×c marginal relief may be provided under specific conditions

6hat is Section 80 C ?cc

No matter what tax bracket you fall under, Section 80 C of the Income Tax Act acts
as a saviour, outlining deductions that can be made from your taxable income. c

÷c Section 80 C allows certain investments and expenditures to be exempted

from tax.
÷c You need to invest in the instruments specified under this Section and deduct
that amount from your gross income. You are liable to pay tax only on the
income derived after this deduction.
÷c Investments up to a maximum of Rs 1,00,000 only are set for deduction for
any tax bracket. c

6hat are Tax saving options available ? c

—( c c

c˜cc
01#cc
Provident Fund (PF) contribution
Public Provident Fund (PPF) up to Rs 70,000 in
a year
Premium for Life insurance policy or Unit-linked
Insurance Plan
Tax saving Fixed deposits with Banks
Equity Linked Saving Schemes (ELSS)of mutual
funds
Infrastructure bonds
National Savings Certificate (NSC)
Senior Citizens Saving Scheme
Post Office Five Year Term Deposit Account
Payment towards principal amount of home
loan
Pension Plans
/cAn additional deduction of Rs 15,000
under Section 80D has been allowed to an
individual who pays medical insurance
premium for his/her parent(s).

c

 /
In 2008, Senior Citizens Saving Scheme 2004 and the Post Office Five Year Term
Deposit Account have also been brought under the purview of this Section an
additional deduction of Rs 15,000 allowed under Section 80 D to individuals paying
medical insurance premium for his/her parent(s). c

6hat are Equity Linked Saving Schemes?c

Equity linked savings schemes (ELSS) are mutual funds that help you gain the twin
advantage of earning equity-linked returns with the additional benefit of saving tax.
ELSS have a lock-in period of 3 years, which encourages long term investing among
investors and gives ample time for the fund manager to manage a portfolio of
stocks that can outperform over a period of time.cc

6hy is the Equity Linked Savings Scheme a winner ?c

Over a longer horizon, it has been witnessed that equities outperform most other
asset classes in terms of returns. c

Advantages of ELSS c

×c Investments in equity delivers higher returns over a longer period,

surpassing returns from other tax saving instruments
×c A lock-in of 3 years ensures you stay invested for a longer period, thus
allowing your money to grow over a period of time.
×c ELSS will endeavor to provide higher returns with tax-efficiency
×c One has the option of investing small amounts of Rs 500 each month in ELSS
through Systematic Investment Plans (SIPs)

#
 cc c

c c (( ccc c
 
 cc
Returns
( per Tax
Lock-in minimum maximum
Risk cent status
Instruments Period investment investment
Level per on
(years) (Rs) (Rs)
annum) returns
CAGR
Public
Tax
Provident 15 Low 8 500 70,000
free
Fund (PPF)
National
Savings
6 Low 8 100 1,00,000 Taxable
Certificate
(NSC)
Bank Fixed
5 Low 11 10,000 1,00,000 Taxable
deposits
Equity
Linked
market Tax
Savings 3 High 500 1,00,000
linked free
Schemes
(ELSS)
Unit Linked
10,000 (as
Insurance market Tax
3 High annual 1,00,000
Policy linked free
premium)
(ULIP)
c
$ 
/Past performance may or may not be sustained in future. All
rates of return except ICICIPru Tax Plan are from RBI, Handbook of
Statistics on Indian Economy, 1999, 00 and 04, SBI and
www.indiapost.gov.in. Some of these instruments are not liquid, so the
value is only indicative computed using the return as on 19/8/1999 on a
compounded annual growth rate basis. ICICI Prudential Tax Plan returns
are CAGR and are based on NAV on 19/8/99, which was Rs.10 and NAV on
Nov 28, 2008 (29-Nov-08 & 30-Nov-08 were non business days), which
was Rs. 50.81 No loads are considered in the computation. Past
performance may or may not be sustained in the future. PPF interest rates
were modified to 11% on 15 Jan 2000, 9.50% on 1 march 2001, 9% on 1
march 2002 and 8% on 1 march 2003.c

c
c

c
c
c
c

cc

c
c