An amount subtracted from the federal tax payable, which will directly reduce the amount of tax payable.

A method of evaluating future security prices and market directions, based on statistical analysis of variables such as trading volumes (historic) and price changes, in order to identify patterns.

The annual return on an investment including interest income, dividend income and capital gains.

To calculate the return from open-ended mutual funds Investors can apply the following equation and guidelines:

Symbols stand for:

a	=	Date of investment
b	=	Date of calculation of return or date of redemption
x	=	(b-a) means period of investment holding
PP	=	Purchase Price or NAV at the beginning of relevant year
RP	=	Redemption Price or NAV at the end of relevant year
D	=	Dividends received during the investment holding period or relevant year

Profit from investment can be calculated as follows:

(RP+D-PP)

The return can be worked out by dividing the profit from investment by the PP and then be annualized. Investors can work out the return for the entire holding period (i.e. x), or separately for each year.

Open-ended funds recover a sales charge (called sales load) from unit/ share holders. Sales load is a certain fixed percentage of NAV. Some mutual funds recover the sales load when investors purchase the units, whereas others do when investors redeem the units. Mutual funds generally do not charge sales load on reinvestment of dividend. The shorter the period of investment, the greater will be the impact of the sales load. Maximum benefit can be derived from mutual fund investment by regularly investing, reinvesting the dividend and holding the investment for a longer period.

The redemption of units in one account to purchase units in another account within the same family of funds. The transaction usually takes place at the same time.

Means a company including a Bank that the Management Company shall appoint for performing the Registrar Function.

A legal entity created by a grantor for the benefit of designated beneficiaries, under the laws of the jurisdiction and the valid trust instrument.

In the case of a mutual fund established as a trust, an individual or person responsible for representing the interests of the unit holders.

Legal document that includes the conditions under which a fund is issued. It includes the face value, maturity date, coupon rate and any other terms and/ or features.

An investment dealer that assists corporations or governments to issue new securities to the public. The investment dealer may purchase the security directly from the issuer for resale to the public or may sell the securities to the public on its behalf.

Part of ownership in a mutual fund, when it is established as a trust.

Owner of one or more units in a mutual fund.

Measures the amount of change in the price and the returns of a security over a period of time. A measure of the relative volatility of a stock to the overall market is its beta.

(1) Deductions by an employer from employees' salaries for the payment of federal and provincial income taxes. (2) Withholding by corporations and financial institutions of interest and dividend payments due to investors.

Also known as return. It is the amount of interest paid on a bond or dividend paid on the current market price of the security, expressed as a percentage.

A curve formed when plotting yield against maturity over a given period.
a) Negative Yield Curve. Shorter-term interest rates are higher than longer-term interest rates. It occurs in periods of a "tight" credit environment. Also called inverted yield curve.
b) Normal Yield Curve. Shorter-term interest rates are lower than longer-term interest rates. It occurs in periods of a "loose" credit environment. Also called positive yield curve.

The yield an investor of a bond or debenture would earn if the security were held to maturity. It factors in the price paid for the security (price discount or price premium), the coupon rate, the period remaining to maturity and the face value.

Bonds issued by the government, are purchased by investment dealers, who create zero coupon or strip bonds. They separate or "strip" the face value from its coupon, and then sell them separately as strip bonds. The stripped portion of the principal, and the coupons, is sold separately at discounts in the market.