Investing glossary

23 terms

AMC (Annual Maintenance Charge) Investing

Yearly fee for maintaining your demat account.

Brokerage Investing

The broker's fee for executing your trade.

Compounding Mutual Funds

Growth earning growth — returns on returns.

Credit Card Credit Cards

Borrow-now, pay-later line for purchases with an interest-free window.

Credit Card Annual Fee Credit Cards

Yearly charge for holding the card; waivers often apply.

Credit Card Interest (Finance Charge) Credit Cards

~3.5%/month on revolved balances — the costliest common debt.

Credit Score (CIBIL) Credit Cards

3-digit number (300–900) summarising your creditworthiness.

DP Charge Investing

Fee when shares leave your demat on a delivery sell.

Delivery Trading Investing

Buying shares to hold overnight or longer.

Demat Account Investing

Electronic vault that holds your shares and securities.

Direct Plan Mutual Funds

Mutual-fund plan with zero distributor commission.

EMI Conversion Credit Cards

Split a purchase into monthly instalments, usually with interest.

ETF (Exchange Traded Fund) Investing

Index basket that trades live like a stock.

Expense Ratio Mutual Funds

Yearly % a mutual fund charges for management.

Forex Markup Credit Cards

Extra % charged on international card spends.

Index Fund Mutual Funds

Mutual fund that mirrors an index at end-of-day NAV.

Intraday Trading Investing

Buying and selling a stock within the same day.

LRS (Liberalised Remittance Scheme) US Investing

RBI window letting residents invest up to $250,000/year abroad.

Reward Points & Cashback Credit Cards

Points or cash earned per rupee spent, with caps that matter.

SIP (Systematic Investment Plan) Mutual Funds

Fixed automatic monthly investment into mutual funds.

STT (Securities Transaction Tax) Investing

Government tax on listed security transactions.

TCS on Foreign Remittance US Investing

Tax collected at source on large LRS transfers.

Trading Account Investing

The account you use to place buy/sell orders.