Clear, concise definitions for the most important terms in wealth management and insurance.
An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.
Fixed income instruments that represent a loan made by an investor to a borrower (typically corporate or governmental).
The measure of an investment's annual growth rate over time, with the effect of compounding taken into account.
A tax on the profit realized on the sale of a non-inventory asset that was purchased at a lower price. Common in mutual fund and stock sales.
The total amount of money accumulated by an investor for a specific goal, such as retirement or child education.
Mutual fund plans bought directly from the fund house without involving any distributor or broker, resulting in lower expense ratios.
A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any one asset's poor performance.
A type of mutual fund in India that invests primarily in equity and offers tax benefits under Section 80C of the Income Tax Act.
A highly liquid cash reserve set aside specifically for unplanned expenses or financial emergencies, typically equal to 3-6 months of living expenses.
A life insurance policy that pays a lump sum after a specific term (on its maturity) or on death. It combines both insurance and investment.
The annual fee that all mutual funds or ETFs charge their shareholders. It covers the fund's management and operational costs.
A professional entrusted to manage wealth who is legally and ethically bound to act solely in the best interest of the client, avoiding conflicts of interest.
A type of mutual fund with a portfolio constructed to match or track the components of a financial market index, such as the Nifty 50.
The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
The degree to which an asset or security can be quickly bought or sold in the market without affecting its price.
Investing a large amount of money in one go, rather than breaking it up into smaller installments over time.
An investment car made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
The value of an entity's assets minus the value of its liabilities, often in relation to open-end funds or mutual funds, representing the per-share/unit price.
A voluntary, defined contribution retirement savings scheme designed to enable systematic savings during a citizen's working life.
The process of realigning the weightings of a portfolio of assets. It involves periodically buying or selling assets in a portfolio to maintain an original desired level of asset allocation.
Mutual funds bought through a distributor, broker, or financial advisor who receives a commission from the fund house, leading to a slightly higher expense ratio.
The degree of variability in investment returns that an investor is willing to withstand in their financial planning.
An investment strategy where an investor invests a fixed amount of money at regular intervals in a mutual fund.
A plan that allows investors to give consent to a mutual fund to periodically transfer a certain amount/units from one scheme and invest in another scheme of the same mutual fund house.
A facility that allows an investor to withdraw a specific amount of money from a mutual fund investment at regular intervals.
A section in the Indian Income Tax Act that allows for a maximum tax deduction of Rs 1.5 Lakhs every year from an investor's total income.
A type of life insurance policy that provides coverage at a fixed rate of payments for a limited period of time, offering high coverage for low premiums.
An additional health insurance policy that provides extra coverage over and above a base health insurance policy once the deductible limit is crossed.
The process of accumulating assets and growing one's net worth over a long period through disciplined investing and financial planning.
A metric used to calculate returns on investments where multiple transactions (SIPs, SWPs, lump sums) happen at different times.
