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AMC: The AMC describes Asset Management Company; it is the business face of the MF, as it manages all the affairs of the MF.
R & T Agents: The R&T agents are responsible for the investor servicing functions, as they maintain the records of investors in MF.
Custodians: Custodians are responsible for the securities held in the mutual fund’s portfolio. 189. Scheme takes over: if an existing MF scheme is taken over by another AMC, it is called as scheme take over.
Meaning of load: Load is the factor that is applied to the NAV of a scheme to arrive at the price.
Market capitalization: Market capitalization means number of shares issued multiplied with market price per share.
Price earnings ratio: The ratio between the share price and the post tax earnings of company is called as price earnings ratio.
Dividend yield: The dividend paid out by the company, is usually a percentage of the face value of a share.
Market risk: It refers to the risk which the investor is exposed to as a result of adverse movements in the interest rates. It also referred to as the interest rate risk.
Re-investment risk: It the risk which an investor has to face as a result of a fall in the interest rates at the time of reinvesting the interest income flows from the fixed income security.
Call risk: Call risk is associated with bonds have an embedded call option in them. This option hives the issuer the right to call back the bonds prior to maturity.
Credit risk: Credit risk refers to the probability that a borrower could default on a commitment to repay debt or band loans
Inflation risk: Inflation risk reflects the changes in the purchasing power of the cash flows resulting from the fixed income security.
Liquid risk: It is also called market risk, it refers to the ease with which bonds could be traded in the market.
Drawings: Drawings denotes the money withdrawn by the proprietor from the business for his personal use.
Outstanding Income: Outstanding Income means income which has become due during the accounting year but which has not so far been received by the firm. 203. Outstanding Expenses: Outstanding Expenses refer to those expenses which have become due during the accounting period for which the Final Accounts have been prepared but have not yet been paid.
Closing stock: The term closing stock means goods lying unsold with the businessman at the end of the accounting year.
Methods of depreciation:
1. Unirorm charge methods:
a. Fixed installment method
b .Depletion method
c. Machine hour rate method.
2. Declining charge methods:
a. Diminishing balance method
b. Sum of years digits method
c. Double declining method
3. Other methods:
a. Group depreciation method
b. Inventory system of depreciation
c. Annuity method
d. Depreciation fund method
e. Insurance policy method.
Accrued Income: Accrued Income means income which has been earned by the business during the accounting year but which has not yet become due and, therefore, has not been received.
Gross profit ratio: it indicates the efficiency of the production/trading operations.
Formula :  
Gross profit
Net sales
Net profit ratio: it indicates net margin on sales
Net profit
--------------- X 100
Net sales
Return on share holders’ funds: it indicates measures earning power of equity capital.
Profits available for Equity shareholders
-----------------------------------------------X 100

Average Equity Shareholders Funds

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