Glossary - S

A fund that invests primarily in securities of companies engaged in a specific investment sector.

The term "security" refers to a multitude of different investments, such as stocks, bonds, investment contracts, notes, and derivatives. For example, a security can represent ownership in a corporation in the form of stock, a creditor relationship with a governmental body or corporation in the form of a bond, or rights to ownership in the form of an option.

Difference in price, when an arbitrage transaction is executed by buying and selling simultaneously in two separate markets.

A systematic investment plan involves investing a consistent sum of money regularly, and usually into the same security. A SIP generally pulls automatic withdrawals from the funding account and may require extended commitments from the investor.

A systematic withdrawal plan (SWP) allows for pre-planned cash flows generated by investments as income.