Financial Glossary
A comprehensive glossary of financial terms commonly used in Indian investing and financial planning.
A
AUM (Assets Under Management)
The total market value of assets that an advisor manages on behalf of clients.
C
CFP (Certified Financial Planner)
A professional certification for financial planners issued by FPSB India.
D
DTAA (Double Taxation Avoidance Agreement)
Treaties between India and other countries to prevent double taxation of income.
E
ELSS (Equity Linked Savings Scheme)
Tax-saving mutual funds with a 3-year lock-in period, eligible for Section 80C deductions.
EPS (Earnings Per Share)
The portion of a company's profit allocated to each outstanding share.
F
FEMA (Foreign Exchange Management Act)
Regulations governing foreign exchange transactions in India.
Fiduciary
A person legally obligated to act in the best interest of their client.
Fiscal Year
In India, the financial year runs from April 1 to March 31.
I
Index Fund
A mutual fund that tracks a specific market index like Nifty 50 or Sensex.
M
Market Capitalization
The total value of a company's outstanding shares (Share Price × Number of Shares).
Mutual Fund
An investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other securities.
N
NAV (Net Asset Value)
The per-unit market value of a mutual fund scheme.
NPS (National Pension System)
A government-backed retirement savings scheme offering tax benefits under Section 80CCD.
NRE Account (Non-Resident External)
Indian rupee account for NRIs to park foreign earnings, fully repatriable.
NRO Account (Non-Resident Ordinary)
Indian rupee account for NRIs to manage Indian income, with repatriation limits.
NRI (Non-Resident Indian)
An Indian citizen who resides outside India for employment or business.
P
P/E Ratio (Price-to-Earnings)
A valuation ratio comparing a company's share price to its earnings per share.
PPF (Public Provident Fund)
A long-term government savings scheme with tax benefits under Section 80C.
R
Repatriation
Transferring money from India to a foreign country, subject to FEMA regulations.
RIA (Registered Investment Adviser)
An investment advisor registered with SEBI under the Investment Advisers Regulations.
Rupee Cost Averaging
Investing fixed amounts regularly to reduce the impact of market volatility.
S
SIP (Systematic Investment Plan)
A method of investing fixed amounts regularly in mutual funds.
SEBI (Securities and Exchange Board of India)
The regulatory body for securities markets in India.
Section 80C
A section of the Income Tax Act allowing deductions up to ₹1.5 lakhs for specified investments.
Sensex
The benchmark index of the Bombay Stock Exchange (BSE).
STT (Securities Transaction Tax)
Tax levied on the purchase or sale of securities in India.
T
TDS (Tax Deducted at Source)
Tax collected at the source of income, common for NRI investments in India.
V
Vesting Period
The time period before an investor gains full ownership of employer-contributed retirement funds.
This glossary provides general definitions. For specific investment or tax advice, consult a SEBI-registered fiduciary advisor.