NISM-Series V-A: Mutual Fund Certification Exam Notes
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Government securities do not have a credit risk.
Investments in corporate issuances carry credit risk. Higher the credit rating, lower is the default risk.
Segregated portfolio' means a portfolio, comprising of debt or money market instrument affected by a credit event, that has been segregated in a mutual fund scheme. 'Main portfolio' means the scheme portfolio excluding the segregated portfolio.
Asset Management Company (AMC) were allowed to create segregated portfolio in a mutual fund scheme in case of a credit event at issuer level i.e. downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA).
Returns can be measured in various ways - Simple Returns, Annualised Returns, Compounded Returns, Compounded Annual Growth Rate.
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