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Glossary M

Management Fee/Expense

The charge made to a mutual fund for providing investment and advisory services, usually expressed as percentage of assets.

Market Capitalization

Represents the market value of the company. It is a product of the current market price and the number of shares outstanding.

Market Instrument

A fully negotiable instrument for short-term debt.

Market Lot

A fixed minimum number of shares, in which or in multiples of which, shares are bought and sold on the stock exchange. The advent of dematerialization of shares will do away the significance of market lot.

Market Risk

It refers to the risk posed by the market in itself i.e. the risk that the price of a security will rise or fall due to changing economic, political, or market conditions, or due to a company's individual situation.

Maturity or Maturity Date

The date upon which the principal of a security becomes due and payable to the security holder.

Minimum Additional Investment

The minimum amount, which an existing investor should invest for purchasing fresh units.

Minimum Balance

It is the minimum amount specified by a fund that should remain invested in a scheme after any redemption.

Minimum Subscription

It refers to the minimum amount required to be invested to purchase units of a scheme of a mutual fund.

Minimum Withdrawal

The smallest sum that an investor can withdraw (get redeemed) from the fund at one time.

Money Market

It refers to a market for very short-term securities. Money market instruments are forms of debt that mature in less than a year and are very liquid in nature. Securities such as Treasury Bills and Call Money make up the bulk of trading in the money markets.

Money Market Instruments

Refers to Commercial Papers, Treasury Bills, GOI Securities etc. with an unexpired maturity less than or up to one year, Call Money, Certificates of Deposit and any other instrument specified by the Reserve Bank of India.

Mutual Funds

An investment company that pools money from its unit-holders and invests that money into a variety of securities, including stocks, bonds, and money-market instruments. This represents a way of investing money into a professionally managed and diversified pool of securities.