It is also a measure of risk adjusted return. It is computed by dividing the excess returns over and above the risk free return by the scheme s beta. The investment philosophy which involves the EIS analysis. Here the fund manager first looks at the economy, industry and then filters down to the company that are likely to benefit from those favourable economic and industrial trends. Underwriter A banker or financial institution which agrees to buy the unsubscribed portion of any new issue if the issue fails to generate a good response and later on dispose it off at a premium.
Unit Is a representation of ownership in the assets of the scheme.
Much like a share is in the capital of a company. A person who owns units under a Mutual Fund. It is akin to holding shares in a company. The gain accrued to the unitholder by way of increase in the net asset value of the scheme but not yet realized by the unitholder. Value Investing Refers to a style of investing where investment is made in securities that are perceived to be quoting below their intrinsic worth or below valuations being commanded by the industry or the market.