Getting started terms
The vocabulary of actually opening an account and buying something. Brokers, demat accounts, order types and the documents involved. Most of these appear in the first week and then never confuse you again.
Annuity
A product that pays you a fixed income for life in exchange for a lump sum.
Broker
The company that lets you buy and sell investments.
Brokerage
The fee your broker charges for placing a trade.
Contract note
The bill your broker sends after a trade, listing every charge.
Demat account
The account that holds your shares electronically.
EPF
A retirement fund most salaried employees in India contribute to automatically.
KYC
The identity check required before you can open an investment account.
L₹
The RBI scheme that lets you send money abroad, up to a yearly limit.
Limit order
An instruction to buy or sell only at a price you specify, or better.
Market order
An instruction to buy or sell immediately at whatever price is available.
NPS
A government run retirement account you contribute to until you are 60.
PPF
A government savings account with a 15 year lock-in and tax free interest.
Retirement corpus
The total amount you need saved to stop working.
Stock exchange
The marketplace where shares are bought and sold.
TCS
Tax collected upfront when you send money abroad, which you can claim back.
Trading account
The account you use to place buy and sell orders.