Plain-English definitions for the terms used across Giri's FinTech.
- P/E ratio
- Price-to-Earnings. Price divided by earnings per share. Lower can mean cheaper; very low can mean trouble. Indian large-caps typically trade 18–30.
- P/B ratio
- Price-to-Book. Compares price to net assets per share. Useful for banks and capital-heavy businesses.
- ROE
- Return on Equity. Profit earned per ₹ of shareholder capital. Above 15% is generally good.
- Debt/Equity (D/E)
- Total debt divided by shareholder equity. Lower is safer; under 1 is comfortable for most sectors.
- Beta
- How much a stock moves relative to the index. Beta of 1 = matches Nifty; under 1 = less volatile.
- Dividend yield
- Annual dividend ÷ price. Like interest you receive while holding the stock.
- Market cap
- Share price × number of shares. Large-cap > ₹20,000 Cr; Mid-cap ₹5,000–20,000 Cr; Small-cap < ₹5,000 Cr.
- ETF
- Exchange-Traded Fund. Buys a basket (like the Nifty 50) and trades on the exchange like a stock. Low cost.
- Index fund
- Mutual fund that mirrors an index (Nifty, Sensex). No fund-manager risk; very low fees.
- Debt fund
- Mutual fund that invests in bonds and government securities. Lower returns, lower risk than equity.
- Penny stock
- Sub-₹50 / ₹100 share. Often illiquid and volatile. Use a tiny portion of your portfolio.
- F&O
- Futures & Options. Derivatives based on stocks/indices. Used for hedging or leveraged long-term bets.
- NAV
- Net Asset Value. The per-unit price of a mutual fund or ETF, calculated daily.
- Expense ratio
- Yearly fee a fund charges, expressed as % of assets. Lower is better for long-term returns.
- CAGR
- Compound Annual Growth Rate. The smoothed annualised return over multiple years.