Money Market Definitions - Starting with R

Here is the list of terms associated with the money market, starting with alphabet R

 

 

RATE OF RETURN

The total proceeds derived from the investment per rupee initially invested. Proceeds must be defined broadly to include both cash distributions and capital gains. The rate of return is expressed as a percentage.

 

RATINGS

Designations given by credit rating agencies indicating relative credit quality as compared to other funds.

 

RECORD DATE

The date the fund determines who its unitholders are; "unitholders of record" who will receive the fund's income dividend and/or net capital gains distribution.

 

REDEMPTION

The paying off or buying back of units of a mutual fund / bond by the issuer.

 

REDEMPTION FEE

A fee charged by a limited number of funds for redeeming, or buying back, fund units.

 

REDEMPTION PRICE

The price at which a mutual fund's units are redeemed (bought back) by the fund. The redemption price is usually equal to the current NAV per unit.

 

REFUND

The act of returning money to an investor by the fund. This could be on account of rejection of an application to subscribe units or in response to an application made by the investor to the fund to redeem units held by him.

  

REINVESTMENT DATE

The date on which a share's dividend and/or capital gains will be reinvested (if requested) in additional fund shares.

 

REINVESTMENT PRIVILEGE

A service that most mutual funds offer whereby a shareholder's income dividends and capital gains distributions are automatically reinvested in additional shares. See Automatic Reinvestment.

 

RELATIVE VOLATILITY

A ratio of a portfolio's standard deviation to the standard deviation of a benchmark index. See Volatility Measures.

 

REPATRIATION CONVERSION OF FOREIGN CURRENCY TO AN INVESTOR'S BASE CURRENCY

Rupee-Cost-Averaging With rupee-cost-averaging, you invest a fixed amount on a regular basis - regardless of the current market trends. The investor buys more shares when the price is low and fewer shares when the price is high; the overall cost is lower than it would be if a constant number of shares were bought at set intervals. Rupee-cost-averaging does not assure a profit or protect against a loss in a declining market. You must continue to purchase shares both in market ups and downs. The goal of rupee-cost-averaging is to attain a lower average cost per share.

 

REPO

Sale of Securities with simultaneous agreement to repurchase them at a later date.

 

REPURCHASE

Buying back/ cancellation of the units by a fund on an ongoing basis or for a specified period or on maturity of a scheme. The investor is paid a consideration linked to the NAV of the scheme

 

REPURCHASE DATE /PERIOD

In the case of close-ended schemes, the specified date on which or period during which the investor can redeem units held by him in the scheme before the maturity of the scheme.

 

REPURCHASE PRICE

The price of a unit (net of exit load) that the fund offers the investor to redeem his investment.

 

RETURNS

The dividend and capital appreciation accruing to the investor on the investment held by him.

 

REVERSE REPO

Purchase of securities with simultaneous agreement to sell them at a later date.

 

RISK ADJUSTED RETURNS

Generally, the expected returns from an investment are dependent on the risk involved in the investment. For the purpose of comparing returns from investments involving varying levels of risk, the returns are adjusted for the level of risk before comparison. Such returns (reduced for the level of risk involved) are called risk-adjusted returns.

 

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