Alliance GSF has amended the provision governing portfolio maturity of its Short-term and Long-term Plans. This will come into effect from May 2, 2002.
Under the Short-term plan, the provision regarding to "maximum rupee weighted average maturity of three years" of the portfolio will be amended as "maximum rupee weighted duration of three years."
And in the Long-term plan, the provision pertaining to "maximum rupee weighted average maturity of nine years" of the portfolio will be amended as "maximum rupee weighted duration of seven years."
Duration measures the portfolio's sensitivity to changes in interest rate. It is calculated as the percent change in the portfolio's price with a change in the yield of 1 percent. The price of the portfolio is the present value of its future cash flows, which depend on the coupon rate and the maturity. A bond with a higher coupon will have a lower duration because a higher proportion of the total inflows will be received in the interim. Bonds with longer maturities have longer duration.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
