Getting started
What is annuity?
A product that pays you a fixed income for life in exchange for a lump sum.
Explained in more detail
You hand over capital and receive regular payments until you die. It removes the risk of outliving your money and it also means you no longer control that capital. In India, part of an NPS corpus must be used to buy one.
An example
For instance₹40 lakh might buy a monthly income of a few tens of thousands, depending on rates and age.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time annuity appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.