Depreciation A decrease in the value of the investment. Dividend Cash distributions made by mutual funds. In India dividends are inclusive of capital gains and income earned by the fund. The phenomenon is observed in close ended schemes whose units are listed on the bourses. Diversification It refers to the dispersion of fund money over a number of securities and asset classes.
Diversification is undertaken by a fund to lower risk.
It is a facility whereby the investor opts to channelise the proceeds of the income received by him from the fund back into the scheme thereby enabling him to buy more units. Entry Load or Front End Load Entry Load is a charge levied by the fund on the unitholder at the time of investment and it is linked to the NAV of the fund concerned. Normally, such schemes focus on capital appreciation rather than regular income. Ex-dividend Date A publicly announced date on or after which the investor is not entitled to the dividend declared. The NAV of the scheme falls by an amount equivalent to the dividend on the ex dividend date.