Personal Finance Glossary
What is AEPS? Meaning, Full Form & How It Works AePS stands for Aadhaar Enabled Payment System. The National Payments…
What is Accrued Interest? Meaning, Definition & How It Works Accrued interest describes the gap between when interest is earned…
What is Active Management? Meaning, Definition & How Actively Managed Funds Work Active management is an investment approach where a…
What is Alpha in Finance? Meaning, Definition & How It Works In investing, alpha is shorthand for the extra return…
What is an AIF (Alternative Investment Fund)? Meaning & How It Works Alternative Investment Fund, or AIF, is the term…
What is Amortisation? Meaning, Definition & How It Works Amortisation is essentially the math behind every EMI you pay. When…
What is an Annuity? Meaning, Definition & How It Works An annuity is essentially a trade. You give an insurer…
What is Assessment Year? Meaning, definition & how it works in India Assessment year, or AY, is the year in…
What Is Asset Allocation? Asset allocation is the decision about how to divide your money across different types of investments….
What is an Asset Management Company? Meaning, Definition & How It Works In India, every mutual fund is set up…
What is Auto-Sweep Facility? Meaning, definition and how it works Auto-sweep facility in banks works on a simple idea: most…
What is a balloon payment? Meaning, definition and how it works A balloon payment is the terminal, oversized instalment on…
Bank – Meaning, Types & How Banking Works in India A bank is a financial intermediary, it sits between people…
What is the Banking Ombudsman Scheme? Meaning, how it works & how to file a complaint The Banking Ombudsman Scheme…
What is a bequest? Meaning, definition & how it works in a will? A bequest is a legal instruction in…
What is beta in finance? Meaning, definition and how it works? Beta, represented by the Greek letter β, is a…
Blockchain – Meaning, How It Works & Uses in Finance Blockchain is a type of distributed ledger technology (DLT). Think…
What are blue chip stocks? Meaning, definition and how they work? The term “blue chip” comes from poker, where blue…
Bond Yield – Meaning, Definition & How It Works Bond yield is the income return on a bond investment. When…
What is a bond? Meaning, definition & how it works A bond is a debt security issued by a government,…
What is a bridge loan? Meaning, definition and how it works A bridge loan is a short-term credit facility that…
What is a budget? Meaning, definition and how it works A budget is a written or digital record of expected…
What is BNPL? Buy Now Pay Later meaning, how it works & credit score impact BNPL, short for Buy Now…
What is Capital Preservation? Meaning, Definition & How It Works Capital preservation — known as punjee suraksha in Hindi and…
What is Cash Reserves? Meaning, Definition & How It Works Cash reserves meaning, in simple terms, is money kept in…
What is a Charge-Off? Meaning, Definition & How It Works A charge-off — sometimes written as “charge off” or referred…
What is Cheque Truncation System (CTS)? Meaning, Process & How It Works Cheque truncation means stopping a physical cheque at…
What is Claim Settlement Ratio (CSR)? Meaning, Definition & How It Works Claim settlement ratio measures an insurer’s track record…
Codicil – Meaning, Format & How to Add One to Your Will in India A codicil, from the Latin codicillus,…
What is CAGR? Meaning, Definition & How It Works CAGR tells you how an investment grew on average, every year,…
What is Compound Interest? Meaning, Definition & How It Works Compound interest — known as chakriya byaj or chakravridhi vyaj…
What is a Contingency Fund? Meaning, Definition & How It Works A contingency fund — called aapat nidhi or sankat…
What is Coupon Rate? Meaning, Definition & How It Works The coupon rate is set once, at issuance, and locked…
What is Credit Appraisal? Meaning, Definition & How It Works Credit appraisal — also called credit assessment or credit analysis…
What is Credit Score? Meaning, Range & How It Works A credit score is calculated by credit bureaus using data…
What is Credit Utilization Ratio? Meaning, Definition & How It Works The ratio is driven entirely by how much of…
What is Debt Management? Meaning, Definition & How It Works Debt management is a broad term for the strategies people…
What is the Debt Snowball Method? Meaning, Definition & How It Works The debt snowball method is a debt repayment…
What is Debt-to-Income Ratio (DTI)? Meaning, Definition & How It Works Debt-to-income ratio, or DTI, measures how much of your…
What is disinheritance? Meaning, types and how it works Disinheritance is a legal act where a person, while making a…
What is Diversification? Meaning, Definition & How It Works Diversification in finance means holding a mix of assets, such as…
What are Dividends? Meaning, Definition & How They Work A company’s dividend goes through a fixed sequence before it lands…
I was talking to my client’s friend, Rohan, who informed me that he earns ₹80,000 a month. By the 25th…