Category Archives: Decoding Financial Jargons

Debt Mutual Funds

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Debt Mutual Fund refers to the money pooled from investors in fixed income securities, which include Government Bonds, Corporate Bonds, Money market instruments, by the Mutual Funds. These instruments have different periods of maturity and different coupon rates (interest earned from investment). As an example, Liquid Funds are a category of Debt Mutual Funds which are suitable for parking money for short term (more like a savings bank A/c) like a month or 2. Like the SB A/c where we can park the money for a few days to even years, Liquid funds can be used without any time restriction and typically give you returns of 2 to 3% more than savings account.  From a risk perspective, Debt MFs are relatively risky when compared to Bank or Postal Deposits, but when used judiciously, can yield much higher post tax returns.

PenguWIN attempts to decode Financial Jargons <Debt Mutual Funds>

Term Deposit

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A term deposit is a fixed-term or tenure or maturity period deposit held at a financial institution. Typical examples include 90 days, 6 Months and 1-year Fixed Deposit in a bank. There is usually a penalty attached to the deposit for premature withdrawal and also a differential interest rate for Senior Citizens

PenguWIN attempts to decode Financial Jargons <Term Deposit>

Gross Domestic Product or GDP

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Gross Domestic Product or GDP is the monetary value of all goods and services produced within a country in a specific period of time, typically a quarter/year. GDP is one of the primary indicators used to gauge the health of a country’s economy.
A significant change in GDP, usually has a significant effect on the stock market. Real GDP refers to economic output adjusted for Inflation while Nominal GDP is not inflation adjusted. India’s GDP in 3rd quarter of 2018 was 7.1%, well below the earlier quarter of 8.2% due to slowdown in consumer spending.
The highest ever recorded quarterly GDP figure is 11.4% during Q1 of 2010 under Dr. Manmohan Sigh. India is the 6th largest economy in the world by nominal GDP. Since 2014 with the exception of 2017, India’s economy has been the world’s fastest growing major economy, surpassing China

PenguWIN attempts to decode Financial Jargons <GDP>