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Glossary

Money terms in plain English

This glossary explains the mutual fund, insurance and loan terms Indian investors actually meet — XIRR, NAV, ELSS, exit load, sub-limit, waiting period, EBLR, LTV and more. Each entry answers “what is this?” in a single paragraph, in plain English, with the catch that usually matters. Written by an AMFI-registered Mutual Fund Distributor in Ahmedabad (ARN-354187) for Gujarat families comparing options on their own.

Updated August 2026

Reviewed August 2026 by Ronik Gajjar, AMFI-registered Mutual Fund Distributor (ARN-354187).

Browse every term

48 terms

A

AMCAsset Management CompanyAn AMC (Asset Management Company) is the company that runs a mutual fund's schemes.Mutual funds

B

Balance transferA balance transfer moves your outstanding loan from one lender to another offering a lower rate: the new lender repays the old one and you continue on fresh terms.Loans

C

D

E

F

H

Health top-upA health top-up is a policy that begins paying only after your medical costs cross a fixed threshold, called the deductible, within a policy year.Insurance

I

Index fundAn index fund is a mutual fund scheme that simply holds the same shares, in the same proportion, as a stated index such as the Nifty 50.Mutual funds

K

KYCKnow Your CustomerKYC (Know Your Customer) is the identity verification every investor must complete before investing in mutual funds in India.Mutual funds

L

M

MCLRMarginal Cost of Funds based Lending RateMCLR (Marginal Cost of Funds based Lending Rate) is the internal benchmark banks used to price floating-rate loans before EBLR replaced it.Loans

N

P

R

S

T

U

ULIPUnit Linked Insurance PlanA ULIP (Unit Linked Insurance Plan) is a product that combines life cover with market-linked investment: part of each premium buys insurance and the rest buys units in funds you choose.Insurance

W

Waiting periodA waiting period is the time after a health insurance policy begins during which certain claims are not payable.Insurance

X

XIRRExtended Internal Rate of ReturnXIRR (Extended Internal Rate of Return) is the annualised return on an investment where money goes in or out on irregular dates.Mutual funds

Still not sure what it means for you?

A definition tells you what a term means. It cannot tell you whether the product behind it suits your income, your goal or your family’s timeline — that part depends on your situation, and it is worth an unhurried conversation.

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