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Close-end Fund
A type of fund where there is a fixed number of units that the fund will issue
Custodian A bank, brokerage firm or financial institution which holds and safeguards an individual's, a mutual fund's, or an investment company's assets for them
A strategy of spreading investments among different securities or sectors to reduce the risk of owning one single investment
A distribution of earnings to shareholders of a corporation or a fund
Exchange Traded Fund
An open ended investment fund that tracks the performance of an index but trades like a share on EGX
Fund Manager
An investment professional whose main responsibilities include investing the assets of a mutual, pension, insurance fund, or an ETF implementing investment strategy and managing the day-to-day portfolio trades.
A strategy used to manage investment risk
An index is a numerical value used to measure changes in financial markets. The index is set at a numerical level e.g. 1000 on the base period or starting point against which a percentage change can be compared to at any particular point of time. Indices often serve as barometers for a given market or sector and benchmarks against which financial or economic performance is measured
Index Tracking
A fund designed to track the performance of an index
Indicative Net Asset Value (iNAV) The Indicative Net Asset Value (iNAV) of the ETF is the net asset value of the Exchange traded fund throughout the trading session calculated according to the daily intraday closing values of the portfolio of the Fund's constituents divided by the number of certificates. This is calculated and updated every 15 seconds by the Fund management services company
During a single trading day
The ability to easily turn assets into cash. An investor should be able to sell a liquid asset quickly with a little effect on its price
Margin Trading
A process whereby investors purchase securities with borrowed money and whereby securities themselves are used as collaterals
Market Maker
A member firm of EGX that accepts the risk of holding a certain number of ETFs in order to facilitate trading (buying and selling) of ETFs. The market maker is committed to give quotes on ETFs thus maintain a market in the ETFs during the trading session of EGX
Market Price of ETF
The market price of an ETF is its on going traded price at EGX. It is determined by the forces of supply and demand on the ETF
Refer to Net Asset Value
Net Asset Value
Value of all the fund assets minus the value of the liabilities, divided by the number of shares outstanding
Open-end Fund
A type of fund where there are no restrictions on the amount of units the fund will issue. Open-ended funds issue new units, or cancel units, as investors move into and out of the fund. This creation and redemption process helps keep the funds market price in line with its underlying net asset value
Short Selling
A short sale is the process of selling securities that an investor does not own but have borrowed. The reason is because short sellers expect the price of securities to decline in the future
The relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility