Repurchase agreement An arrangement whereby the asset management company agrees, at the time of the sale, to buy the asset back at a specific price and, typically, on a given date. A measure of how much risk a fund absorbed to generate its returns. Rupee cost averaging Refers to the technique of lowering average cost through systematic investment of a defined amount at fixed intervals. Sector Fund Is a fund that restricts its investments to a defined sector or some defined sectors thereby limiting the scope of its investment universe. The capital gain booked on an asset which has been held for less than 3 years or 1 year in certain cases.
Sharpe ratio A measure of risk-adjusted return.
Standard deviation Is a measure that determines the volatility of a fund over a period of time. Mathematically, standard deviation measures the dispersion of values around a mean. Tracking error Is the difference between the return generated by an index fund and the index on which the fund is modelled. This commission is paid by the fund to the broker . It is the amortisation of the commission linked to the period for which investor stays with the scheme.