Commodity Trading and Exchanges in India
A Commodity refers to a good or resource that is a part of our everyday life and sometimes used as a raw material in production by companies. Some general examples of commodities are Gold,...
Category: Glossary
Group Health Insurance
Group health insurance is also known as a corporate health insurance policy. It is a policy that provides health insurance coverage to a specific group of people. For example, it includes members of an...
Sovereign Gold Bonds- SGBs
Sovereign Gold Bond Scheme was launched by the Government of India in November 2015. The Sovereign Gold Bonds are issued by the RBI on behalf of the Indian Government. The bonds are substitutes for...
Digital Gold
Gold is considered one of the safest investment options throughout centuries. Digital Gold was first offered to consumers in India in 2017 by e-wallets such as Paytm and PhonePe. It allows you to invest...
InvIT – Infrastructure Investment Trust
InvIT – Infrastructure Investment Trust is a trust having a structure similar to mutual funds where they pool the money of investors and invest in infrastructure projects to generate income. In India, InvITs are...
REIT – Real Estate Investment Trust
REITs issue units or shares to investors and investors receive the rent received from the real estate properties under the REIT as dividends. REITs have a structure similar to mutual funds where they pool...
Coffee Can Investing
Coffee Can Investing is a long-term investment strategy in which you buy stocks and forget about them. The term was first coined by Robert J. Kirby in 1984. The strategy offers you the benefit...
Critical Illness Cover
Critical illness refers to illnesses that cause serious harm to health, which may prove fatal also. These illnesses have a significant impact on our lives as they can not only suppress our physical endurance...
Super Top Up Policy in Health Insurance
Due to increasing medical and hospitalization costs, and increased lifespan, the health cover you have today may not be sufficient a few years later. It is not economical or efficient to buy multiple health...
Top Up Policy in Health Insurance
Top Up policy is the cheapest way to supplement your health cover. The increasing medical and hospitalization costs may make your health cover negligible in the future. But it is not feasible or manageable...
Health Insurance – A Complete Guide
One of the side effects of technological advancements is the rise of lifestyle diseases. On the other side, advancements in medical research have also made many of the diseases curable and treatable. However, the...
Preference Shares
Preference shares are a type of company’s stock in which dividends are paid to the shareholders before they are issued to the common stockholders. There are two major types of shares that can be...
Secondary Market in India
A secondary market is a marketplace where participants can trade the securities issued in the primary market. People can buy and sell shares without the intervention of the issuing company. The most commonly known...
Primary Market in India
The Capital Market is divided into two parts – Primary Market and Secondary Market. Primary Market is also called the New/First issue market because the securities are traded here for the first time. Hence, it...
Solvency Ratio
Solvency Ratio in personal finance is used to determine if you can pay off all your debts by selling your assets in case of a financial emergency. It is measured by comparing your total...
Debt to Disposable Income Ratio
Debt to Disposable Income ratio helps you to understand how well you will be able to service your debt without compromising on your lifestyle. It is mostly measured as a monthly metric by comparing...
Debt To Income Ratio
Debt-to-Income Ratio in personal finance is a comparison of your debt payment amount against your income. This ratio is best to be calculated on monthly basis. It is calculated as below: DEBT-TO-INCOME RATIO =...
Net Worth Ratio
Net Worth Ratio, also known as Asset to Debt Ratio in personal finance is your balance sheet measuring your net wealth at a given point in time. This ratio compares the total assets you...
Current Ratio
Current Ratio is a very important liquidity ratio used in both business finance as well as personal finance. It is called so because it considers only current assets and current liabilities. It is calculated...
Liquidity Ratio
Liquidity ratio in personal finance indicates your ability to meet committed expenses by using your cash assets. This ratio tells how comfortably you can meet your financial obligations when you are faced with any...
NPS – National Pension Scheme
What is NPS? National Pension System(NPS) is a pension scheme offered by the Government of India. It is a voluntary contribution scheme that is market-linked and managed by professional fund managers. It was launched...
Chit Funds in India
What are Chit Funds? Chit Fund is one of the popular savings options in India. It is both a savings and a credit product. Chit funds may be organized by financial institutions or informally...
Credit Score
What is a Credit Score? A credit score is a three-digit number representing the creditworthiness of an individual. It usually ranges between 300 and 900, depending on the credit scoring agency. A person’s credit...
ASBA – Application Supported by Blocked Amount
What is ASBA? ASBA stands for Application Supported by Blocked Amount. It is an application made by investors which include authorization to a self-certified syndicate bank (SCSB) to block the application money in the...
ESPP – Employee Stock Purchase Plan
What is ESPP? ESPP is a tax-efficient way through which employees have the opportunity to purchase stocks of the company they work for at a discounted price. Employees contribute to the plan by way...
ESOP – Employee Stock Option Plan
What is ESOP? Employee Stock Option Plan (ESOP) is a type of employee benefit plan which gives you an ownership interest in the company. In this, you can acquire the shares of the company...
RSUs – Restricted Stock Units
What are RSUs? RSUs are stocks of the company given by your employer as part of your compensation. The number of stock units allocated to you per annum as RSUs would be mentioned in...
RNOR – Resident but Not Ordinarily Resident
What is RNOR? RNOR (Resident but Not Ordinarily Resident) is a transitional tax status given to returning Non-Resident Indians (NRIs). In India, the residential status of a person in relevant for determining the taxability...
CIBIL Score
CIBIL Score is simply an individual’s credit score. It is a 3-digit numerical summary of your credit history. It is calculated based on the past borrowing and repayment details of credit as shared by...
Stock Market Indices in India
In India, the majority of the trading happens in two exchanges – the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). BSE SENSEX and NIFTY50 are the main stock indices of these exchanges...
Stock Market Index
A stock market index is a statistical measurement of a section of the stock market. It measures the performance of a basket of stocks that are listed on the stock exchange and are grouped...
