Every finance term,explained simply.
196+ personal finance terms explained in plain English for Indian users — with India-specific context on every term.
196+Terms
8Topic clusters
IndiaSpecific
Topic
Measure of market volatility over time
Investing
Average True Range (ATR)
Measure of market volatility over time
Average time until half of a debt is repaid
Investing
Average Life
Average time until half of a debt is repaid
Average balance in an account over a billing cycle
Credit Cards
Average Daily Balance
Average balance in an account over a billing cycle
Time taken to collect credit sales
Banking
Average Collection Period
Time taken to collect credit sales
Mean balance over a specified period in an account
Banking
Average Balance
Mean balance over a specified period in an account
Average yearly growth rate over a period
Investing
Average Annual Growth Rate (AAGR)
Average yearly growth rate over a period
Service for automatic fund transfers between accounts
Banking
Automatic Transfer Service (ATS)
Service for automatic fund transfers between accounts
Economic policies that self-adjust with economic changes
General
Automatic Stabilizers
Economic policies that self-adjust with economic changes
Default enrollment in employer-sponsored plans
General
Automatic Enrollment
Default enrollment in employer-sponsored plans
Person permitted to use another’s credit account
Credit Cards
Authorized User
Person permitted to use another’s credit account
Examination of financial statements for accuracy
General
Audit
Examination of financial statements for accuracy
Investing
Authorized Capital
Formal confirmation of accuracy in financial reporting
General
Attestation
Formal confirmation of accuracy in financial reporting
Option whose strike price is equal to the market price
Investing
At-the-Money (ATM)
Option whose strike price is equal to the market price
Expected rate of return on annuity investments
Insurance
Assumed Interest Rate (AIR)
Expected rate of return on annuity investments
Fee based on the value of assets managed
Investing
Asset-Based Fee
Fee based on the value of assets managed
Investment backed by underlying assets
Investing
Asset-Backed Security (ABS)
Investment backed by underlying assets
Measure of how efficiently assets generate revenue
Investing
Asset Turnover Ratio
Measure of how efficiently assets generate revenue
Selling off assets of a company for quick profit
General
Asset Stripping
Selling off assets of a company for quick profit
Ratio measuring how effectively assets generate revenue
Investing
Asset Turnover
Ratio measuring how effectively assets generate revenue
Legal strategies to protect assets from creditors
Investing
Asset Protection
Legal strategies to protect assets from creditors
Company that manages investments on behalf of clients
Investing
Asset Management Company (AMC)
Company that manages investments on behalf of clients
Ratio to ensure sufficient assets cover liabilities
Investing
Asset Coverage Test
Ratio to ensure sufficient assets cover liabilities
Managing assets to achieve financial goals
Investing
Asset Management
Managing assets to achieve financial goals
Measure of a company’s ability to cover debts
Investing
Asset Coverage Ratio
Measure of a company’s ability to cover debts
Plan for distributing investments across asset classes
Investing
Asset Allocation Strategy
Plan for distributing investments across asset classes
Mutual fund that invests across multiple asset classes
Investing
Asset Allocation Fund
Mutual fund that invests across multiple asset classes
Distribution of investments across various asset classes
Investing
Asset Allocation
Distribution of investments across various asset classes
Anything valuable owned by an individual or company
General
Asset
Anything valuable owned by an individual or company
Price sellers are willing to accept for a security
Investing
Ask Price
Price sellers are willing to accept for a security
Chance to profit from price differences
Investing
Arbitrage Opportunity
Chance to profit from price differences
Model for asset pricing based on multiple factors
Investing
Arbitrage Pricing Theory
Model for asset pricing based on multiple factors
Right or privilege associated with property ownership
General
Appurtenance
Right or privilege associated with property ownership
Post-retirement income option for certain pensions
Insurance
Approved Retirement Fund (ARF)
Post-retirement income option for certain pensions
Property that has increased in value
Investing
Appreciated Property
Property that has increased in value
Regulations preventing financial crime
Banking
Anti-Money Laundering (AML)
Regulations preventing financial crime
Tax to protect against imported goods priced below market
General
Anti-Dumping Duty
Tax to protect against imported goods priced below market
Protection against ownership dilution in investments
Investing
Anti-Dilution Provision
Protection against ownership dilution in investments
Table showing present values of annuities
Insurance
Annuity Factor Table
Table showing present values of annuities
Factor used to calculate present value of annuities
Insurance
Annuity Factor
Factor used to calculate present value of annuities
Annuity with fixed payments for a specific period
Insurance
Annuity Certain
Annuity with fixed payments for a specific period
Series of payments made at equal intervals
Insurance
Annuity
Series of payments made at equal intervals
Yearly return expressed as a percentage
Investing
Annualized Yield
Yearly return expressed as a percentage
Annualized measure of an investment’s total return
Investing
Annualized Total Return
Annualized measure of an investment’s total return
Rate of return standardized to one year
Investing
Annualized Return
Rate of return standardized to one year
Insurance
Annualized Premium
Yearly report of a company’s financial position
General
Annual Statement
Yearly report of a company’s financial position
Yearly financing cost for a project or investment
Investing
Annualized Cost of Capital
Yearly financing cost for a project or investment
Yearly summary of a company’s financial health
General
Annual Report
Yearly summary of a company’s financial health
Yearly interest rate on loans or credit
Loans
Annual Percentage Rate (APR)
Yearly interest rate on loans or credit
Total pension received annually post-retirement
General
Annual Pension Benefit
Total pension received annually post-retirement
Yearly tax-free gift limit for individuals
Tax
Annual Gift Tax Exclusion
Yearly tax-free gift limit for individuals
Recurring fee charged yearly for services
Credit Cards
Annual Fee
Recurring fee charged yearly for services
Real annual interest rate including compounding
Loans
Annual Effective Rate (AER)
Real annual interest rate including compounding
Total dividend paid by a company in a year
Investing
Annual Dividend
Total dividend paid by a company in a year
Maximum allowed yearly contribution to a savings account
Banking
Annual Contribution Limit
Maximum allowed yearly contribution to a savings account
Value of a recurring contract over one year
General
Annual Contract Value (ACV)
Value of a recurring contract over one year
Rate of interest change per year in an adjustable-rate loan
Loans
Annual Adjustment Rate
Rate of interest change per year in an adjustable-rate loan
Maximum earnings considered for retirement contributions
General
Annual Compensation Limit
Maximum earnings considered for retirement contributions
Yearly fee for maintaining a financial account
Banking
Annual Account Fee
Yearly fee for maintaining a financial account
Investment that returns both interest and principal
Tax
Amortizing Security
Investment that returns both interest and principal
Loan with regular payments that cover interest and principal
Tax
Amortizing Loan
Loan with regular payments that cover interest and principal
Additional payment above face value on debt
Loans
Amortization Premium
Additional payment above face value on debt
Gradual reduction of bond discount over its life
Tax
Amortization of Bond Discount
Gradual reduction of bond discount over its life
Tax credit to offset AMT paid in previous years
Tax
Alternative Minimum Tax Credit
Tax credit to offset AMT paid in previous years
Periodic cost of loan or intangible asset reduction
Loans
Amortization Expense
Periodic cost of loan or intangible asset reduction
Financial option exercisable at any time before expiry
Investing
American Option
Financial option exercisable at any time before expiry
Minimum tax rate for high-income earners
Tax
Alternative Minimum Tax (AMT)
Minimum tax rate for high-income earners
Non-traditional asset classes like real estate or hedge funds
Investing
Alternative Investment
Non-traditional asset classes like real estate or hedge funds
Non-traditional investment outside stocks, bonds, and cash
Investing
Alternative Asset
Non-traditional investment outside stocks, bonds, and cash
Capital loss eligible for tax deduction
Tax
Allowable Capital Loss
Capital loss eligible for tax deduction
Percentage allocated to investment options
Investing
Allocation Rate
Percentage allocated to investment options
Assigned level of risk for specific investments
Investing
Allocated Risk
Assigned level of risk for specific investments
Maximum exposure in a single asset class or sector
Investing
Aggregation Limit
Maximum exposure in a single asset class or sector
Earnings remaining after income taxes are deducted
Tax
After-Tax Income
Earnings remaining after income taxes are deducted
Total demand for goods and services in an economy
General
Aggregate Demand
Total demand for goods and services in an economy
Reinsurance coverage above a specified loss amount
Insurance
Aggregate Excess
Reinsurance coverage above a specified loss amount
High-risk individuals more likely to seek insurance
Insurance
Adverse Selection
High-risk individuals more likely to seek insurance
Fee paid upfront before services are rendered
General
Advance Fee
Fee paid upfront before services are rendered
Statistical measure of a model’s accuracy
General
Adjusted R-squared
Statistical measure of a model’s accuracy
Charge for account maintenance or processing
Banking
Administrative Fee
Charge for account maintenance or processing
Overhead costs associated with running a business
General
Administrative Expenses
Overhead costs associated with running a business
NAV after accounting for adjustments
Investing
Adjusted Net Asset Value (NAV)
NAV after accounting for adjustments
Profit margin after adjusting for irregular expenses
General
Adjusted Gross Margin Ratio
Profit margin after adjusting for irregular expenses
Gross profit adjusted for specific factors
General
Adjusted Gross Profit
Gross profit adjusted for specific factors
Gross margin after adjustments for specific expenses
General
Adjusted Gross Margin
Gross margin after adjustments for specific expenses
Total income minus specific deductions
Tax
Adjusted Gross Income (AGI)
Total income minus specific deductions
Original cost of an asset adjusted for improvements
Tax
Adjusted Cost Base (ACB)
Original cost of an asset adjusted for improvements