CAGR (Compound Annual Growth Rate)
The mean annual growth rate of an investment over a specified period longer than one year.
Financial Encyclopedia
Master the terminology of wealth growth and retirement planning. Clear, simple definitions for every concept.
C
E
Expense Ratio
The annual fee charged by a mutual fund to cover management and administration costs. Lower is usually better.
I
Investment Corpus
Your total wealth pool — the sum of all your original investments plus market gains accrued over time.
S
Safe Withdrawal Rate (SWR)
The maximum percentage of your portfolio withdrawn annually without a high risk of exhausting funds.
Systematic Investment Plan (SIP)
A method of investing a fixed sum regularly in a mutual fund, rather than a one-time lump sum. It benefits from rupee-cost averaging.
Systematic Withdrawal Plan (SWP)
A facility to withdraw a fixed amount regularly from a mutual fund, highly tax-efficient for retirement income.
T
The 4% Rule
A guideline suggesting that if you withdraw 4% of your total corpus in the first year and adjust for inflation, the funds may last 30+ years.
X
XIRR (Extended Internal Rate of Return)
An accurate measure of returns for uneven cash flows like SIPs, accounting for the timing of every installment.