Economy & policy1 min
Liquidity concerns meeting payments when due. Solvency concerns whether assets and capital can absorb obligations and losses.
Get the quick answer +
Liquidity concerns meeting payments when due. Solvency concerns whether assets and capital can absorb obligations and losses. A bank can face a short-term timing mismatch without that observation proving insolvency. Conversely, obtaining temporary funding does not establish that all balance-sheet risks are resolved.
Economy & policy1 min
For a simple illustration, multiply principal by the annual rate and the fraction of a year covered by the borrowing.
Get the quick answer +
For a simple illustration, multiply principal by the annual rate and the fraction of a year covered by the borrowing. State the day-count convention. An annual rate of 5.60% does not mean that 5.60% of principal is charged for a three-day loan.
Economy & policy1 min
The cut-off identifies the marginal accepted auction rate. The weighted-average rate summarises accepted funding prices with their allotted amounts as weights.
Get the quick answer +
The cut-off identifies the marginal accepted auction rate. The weighted-average rate summarises accepted funding prices with their allotted amounts as weights. They answer different questions, so the cut-off should not automatically be described as every successful bidder’s borrowing cost.
Economy & policy1 min
It means participants requested more funding relative to the amount advertised in that particular window.
Get the quick answer +
It means participants requested more funding relative to the amount advertised in that particular window. It is an auction-demand measure. It does not, on its own, measure the whole banking system’s cash deficit, prove insolvency or predict an interest-rate decision.
Economy & policy2 min
The notified amount is the auction window announced by RBI. Bids are what participants request.
Get the quick answer +
The notified amount is the auction window announced by RBI. Bids are what participants request. Allotment is the amount actually accepted and supplied under the operation. A large bid figure cannot be reported as an equally large liquidity injection unless the result supports that statement.
Economy & policy1 min
A variable-rate repo auction lets eligible participants bid for temporary central-bank funding against eligible collateral.
Get the quick answer +
A variable-rate repo auction lets eligible participants bid for temporary central-bank funding against eligible collateral. The accepted price emerges through the auction. Its amount, tenor and reversal date describe a funding operation; they do not, by themselves, announce a change in the policy repo rate.
Fund fundamentals3 min
A mutual fund house manages a range of schemes; it is not itself one universal SIP or one investment portfolio.
Get the quick answer +
A mutual fund house manages a range of schemes; it is not itself one universal SIP or one investment portfolio. Use AMFI’s official member directory to verify names and official websites, then compare the individual schemes that fit the goal. A directory is not an AUM ranking, performance ranking or endorsement.
Accounts & investing2 min
A registrar and transfer agent maintains investor records and processes services for the fund houses it serves.
Get the quick answer +
A registrar and transfer agent maintains investor records and processes services for the fund houses it serves. CAMS and KFintech operate major mutual fund investor-service platforms. They are different from AMCs, investment advisers and depositories. Confirm your scheme’s appointed RTA in its current official document before choosing a servicing portal.
Accounts & investing2 min
“Mutual funds under CAMS” means schemes whose fund houses appoint CAMS for registrar/investor services; it does not mean CAMS manages their portfolios.
Get the quick answer +
“Mutual funds under CAMS” means schemes whose fund houses appoint CAMS for registrar/investor services; it does not mean CAMS manages their portfolios. Use CAMS’s current serviced-fund list and the scheme’s official registrar disclosure. A list of all AMCs is not automatically a CAMS client list.
SIP & compounding2 min
The best SIP is not a separate company or a fixed-interest product.
Get the quick answer +
The best SIP is not a separate company or a fixed-interest product. A SIP is a recurring purchase instruction into a mutual fund. Choose the scheme for your goal and risk capacity, then choose an affordable contribution schedule. Compare like-for-like funds and avoid selecting a SIP only because it recently reported the highest return.
Fund fundamentals3 min
A mutual fund house manages a range of schemes; it is not itself one universal SIP or one investment portfolio.
Get the quick answer +
A mutual fund house manages a range of schemes; it is not itself one universal SIP or one investment portfolio. Use AMFI’s official member directory to verify names and official websites, then compare the individual schemes that fit the goal. A directory is not an AUM ranking, performance ranking or endorsement.
SIP & compounding2 min
The best SIP is not a separate company or a fixed-interest product.
Get the quick answer +
A 15-year horizon allows a longer research window but does not identify one guaranteed winning SIP. The best SIP is not a separate company or a fixed-interest product. A SIP is a recurring purchase instruction into a mutual fund. Choose the scheme for your goal and risk capacity, then choose an affordable contribution schedule. Compare like-for-like funds and avoid selecting a SIP only because it recently reported the highest return.
