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FINLEXICON

Your Financial
Dictionary

Make sense of the financial terms you read, hear, and use every day.

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About FinLexicon

Build Financial Confidence, One Term at a Time.

FinLexicon is your financial dictionary, bringing terms from everyday banking to investing together in one organised place. Find clear meanings and practical examples to help you understand what you read and hear.

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Taxation

Annual Information Statement (AIS)

Annual Information Statement (AIS) is a detailed tax-information statement that shows financial transactions and income-related information reported to the Income Tax Department of India for a taxpayer.

Difficulty
Moderate
View Term
Portfolio & Investment Management

Asset Allocation

Asset allocation is the process of dividing investments across different asset classes, such as equity, debt, gold, and cash, to balance risk and return.

Difficulty
Moderate
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Behavioural Finance

Confirmation Bias

Confirmation bias is the tendency to seek, interpret, and remember information in ways that support an existing belief while giving less attention to evidence that challenges it.

Difficulty
Simple
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Loans And Credit

Credit Score

A Credit Score is a numerical measure of a borrower’s creditworthiness, based mainly on their past borrowing and repayment behaviour.

Difficulty
Simple
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Loans And Credit

Credit Utilization Ratio

The Credit Utilization Ratio shows how much of a person’s available revolving credit limit is currently being used.

Difficulty
Moderate
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Portfolio & Investment Management

Diversification

Diversification means spreading investments across different assets, companies, sectors, or markets so that poor performance in one area does not affect the entire portfolio.

Difficulty
Moderate
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Corporate Finance

Dividend

A Dividend is a portion of a company's profits or reserves distributed to shareholders, typically in cash or additional shares, as a return on their investment.

Difficulty
Simple
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Loans And Credit

EMI

An EMI (Equated Monthly Installment) is the regular monthly payment a borrower makes to repay a loan, usually including both principal and interest.

Difficulty
Moderate
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Portfolio & Investment Management

Exchange-Traded Fund (ETF)

An Exchange-Traded Fund (ETF) is an investment fund that holds a basket of securities and trades on a stock exchange like a regular share.

Difficulty
Moderate
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Insurance

Exclusions

Exclusions are specific situations, risks, losses, or conditions that an insurance policy does not cover.

Difficulty
Simple
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Behavioural Finance

Fear of Missing Out (FOMO)

Fear of Missing Out (FOMO) is the urge to act because others seem to be making money or gaining an opportunity that you might miss.

Difficulty
Simple
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Banking & Financial Institutions

Fixed Deposit (FD)

A Fixed Deposit (FD) is a bank deposit where money is kept for a fixed period at a pre-decided interest rate.

Difficulty
Simple
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