Navigating the world of finance can feel overwhelming with its seemingly endless jargon and acronyms. To help you feel confident and informed, we’ve compiled a glossary of key financial terms, spanning from banking basics to complex investment concepts. Let’s dive in and demystify these terms together!

A:

• Add-On Card: Extend the benefits of your primary credit card to family members with an additional linked card for their convenience.
• Advisory Services: Expert recommendations to guide your financial decisions.
• Anti-Money Laundering (AML): Procedures and regulations to prevent illegal income generation.
• Arbitrage Funds: Mutual funds that profit from price differences in the same asset across various markets.

B:

• Balanced Funds: A mix of stocks, bonds, and money market instruments in one portfolio for diversified growth.
• Bullion Market: A marketplace for trading precious metals like gold and silver, operating 24/7 globally.

C:

• CDMA Mobile: A communication technology for channel access.
• Compound Interest: The interest calculated on both the principal and accumulated interest over time, maximizing your returns.

D:

• Debt Funds: Mutual funds primarily investing in fixed-income securities like bonds.
• Disbursement: Delivery of loan funds by a bank to the borrower.

E:

• E-Commerce (E-Com): Online buying and selling of goods and services, facilitated by credit and debit cards.
• ELSS (Equity Linked Saving Schemes): Tax-saving mutual funds with a 3-year lock-in period for long-term growth.

F:

• Fixed Maturity Plan (FMP): A closed-ended mutual fund with a set maturity date and predictable returns.
• Floating Rate: An interest rate that fluctuates with market conditions or an index.

G:

• Gold ETF: Invest in gold without physical hassles via exchange-traded funds.
• Guarantor: An individual who pledges to repay a loan if the borrower defaults.

H:

• Half-Yearly Interest: Interest payable every six months.
• Hotlisting: Immediate cancellation of a lost or stolen credit or debit card to prevent misuse.

I:

• Insured Declared Value (IDV): The maximum insured amount for a vehicle, based on its current market value.
• International Securities Identification Number (ISIN): A unique 12-character code for identifying securities globally.

L:

• Liquid Funds: Investments in short-term securities for quick access to your money without penalties.
• Letter of Credit (LC): A document ensuring secure international trade payments between buyers and sellers.

M:

• Money Laundering: Converting illicitly earned money into legitimate funds.
• Moratorium Period: A repayment holiday for education loans, usually during the course period plus a buffer time.

N:

• Net Asset Value (NAV): The per-unit price of a mutual fund or ETF, calculated daily.
• National Electronic Funds Transfer (NEFT): A system for transferring money between banks electronically within India.

O-P:

• One-Time Password (OTP): A secure, temporary code for online transactions.
• Point of Sale (POS): The location or platform where a sales transaction occurs, such as a retail store.

R:

• Remittance: Sending money across borders or domestically, often with associated charges.
• Real-Time Gross Settlement (RTGS): Instant and secure fund transfers for large sums.

S:

• Secure Sockets Layer (SSL): A protocol ensuring safe online communication.
• Sweep-Out Facility: A feature transferring excess funds between savings and fixed deposit accounts to maximize interest.

T:

• Tax Rebate: A reduction in taxes for eligible taxpayers, such as senior citizens.
• Telegraphic Transfer (T/T): An electronic means of transferring funds internationally.

V:

• Volatility: A measure of how much a mutual fund’s price fluctuates, indicating risk and potential reward.

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