Glossary
Plain definitions of the terms and metrics used across Plan Your Future.
- P/E ratio
- Share price divided by earnings per share. Shows how many years of current profit the price represents.
- Gap vs 10-year median
- How far today's P/E sits above or below its own 10-year median, in percent. Earlier called "V-Dev".
- Below range · In range · Above range
- Valuation band: P/E more than 10% below, within 10% of, or more than 10% above its 5-year median.
- Well above median
- Valuation far above its historical median. Earlier called "Peak Froth".
- Signal clarity
- How consistent the underlying data points are with each other. Earlier called "Spock score".
- ROCE
- Return on capital employed: operating profit divided by debt plus equity.
- Debt-to-equity
- Total borrowings divided by shareholders' equity.
- PEG ratio
- P/E divided by earnings growth rate. Screens on this site use PEG between 0 and 2.
- Promoter holding
- Share of the company owned by its founders or controlling group.
- India VIX
- Expected Nifty volatility over the next 30 days, from option prices.
- Repo rate
- Rate at which RBI lends to banks. Set at each Monetary Policy Committee meeting.
- CPI inflation
- Yearly change in consumer prices, released monthly by MoSPI.
- FII / DII flows
- Net buying (+) or selling (−) by foreign and domestic institutions, in ₹ crore.
- SIP
- Systematic Investment Plan: a fixed amount invested in a mutual fund every month.
- SWP
- Systematic Withdrawal Plan: a fixed amount withdrawn from a mutual fund every month.
- Exit load
- Fee charged by a fund when units are redeemed before a set period.
- LTCG / STCG
- Long-term / short-term capital gains. Equity funds: gains after 12 months are long-term (12.5% above ₹1.25 lakh); within 12 months short-term (20%).
- Regular Plan
- Mutual fund plan bought through a distributor, who is paid a commission (trail) by the fund house.
- Expense ratio
- Yearly fund cost as a percent of assets, deducted from NAV.
- DADA
- Name of the site's AI assistant.