One of the biggest reasons people do not want to think about finance is the sheer phobia this word generates. The words usually associated with this field are often abbreviations like SIP, PMS, AIF, EPS, EBIDTA which look so complex from the face of it.
Imagine for instance that my name is Neha Misra and if people just start calling me ‘NM’ as an abbreviation, would it make sense to anyone who doesn’t know me?
And why would someone who doesn’t know NM, doesn’t get to see my face, want to understand NM, after all I’m no Narendra Modi (#NM).
But, if people were to simply refer to me as Neha Misra, then I’m just another Neha.
Similarly, if i were to spell out these abbreviations mentioned above:
SIP: Systematic Investment Plan ( Okay, this is JUST an Investment plan that i do systematically or periodically: Say monthly )
PMS: Portfolio Management Service ( a management service for portfolio or wealth)
AIF: Alternate Investment Fund ( Just an alternate investment fund , lets call him Mutual Fund’s older brother )
EPS: Earnings per share ( How much are you getting per share? )
EBIDTA: Earnings before interest, tax, depreciation and amortization ( How much did i REALLY EARN before I paid off interest, tax,depreciation and wrote off my expenses.)
Don’t these make better sense now?
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