Capital cover is a crucial financial metric indicating the capital value of a portfolio relative to the capital sum required to finance it. It serves as a risk assessment tool, with lower capital cover indicating higher investment risk.
In the world of finance, a portfolio refers to the collection of investments held by an individual or institution. This diversified set of holdings could include stocks, bonds, commodities, real estate, and other assets.
A Unit Investment Trust (UIT) is an investment vehicle registered with the SEC under the Investment Company Act of 1940. It purchases a fixed portfolio of securities, which may include corporate, municipal, or government bonds, mortgage-backed securities, common stock, or preferred stock.
