Tax Planning:

Tax planning is the analysis of a financial situation or plan to ensure that all
elements work together to allow you to pay the lowest taxes possible.
Considerations of tax planning include the timing of income, size, the timing of
purchases, and planning for expenditures.
Tax planning strategies can include saving for retirement in an IRA or engaging in
tax gain-loss harvesting.
Examples of Tax Planning:
Maxing out on provident fund contributions to reduce taxable income which
lowers the overall tax liability
Keeping detailed records of charitable donations and claiming a deduction on tax
return, reducing the taxable income

Estate Planning:
Estate planning involves determining how an individual’s assets will be preserved,
managed, and distributed after death or in the event they become incapacitated.
Estate planning tasks include making a will, setting up trusts and/or making
charitable donations to limit estate taxes, naming an executor and beneficiaries,
and setting up funeral arrangements.
A will is a legal document that provides instructions on how an individual’s
property and custody of minor children (if any) should be handled after death.
Various strategies can be used to limit taxes on an estate, from creating trusts to
making charitable donations.
Estate planning can and should be used by anyone—not just the ultra-wealthy.

Hedging:
A hedge is a strategy that seeks to limit risk exposures in financial assets.
Popular hedging techniques involve taking opposite positions in derivatives that
correspond to an existing position in a financial security.
Other types of hedges can be constructed via other means like diversification. An
example could be investing in stocks across different sectors.

Derivatives:
The term derivative refers to a type of financial contract whose value is dependent
on an underlying asset, group of assets, or benchmark. A derivative is set between
two or more parties that can trade on an exchange or over-the-counter (OTC).
These contracts can be used to trade any number of assets and carry their own
risks.

Options:
Options are financial derivatives that give buyers the right, but not the obligation,
to buy or sell an underlying asset at an agreed-upon price and date.
Put Option: A put option (or “put”) is a contract giving the option buyer the right,
but not the obligation, to sell—or sell short—a specified amount of an underlying
security at a predetermined price within a specified time frame.
Call Option: A call is an option contract giving the owner the right, but not the
obligation, to buy an underlying security at a specific price within a specified time.
An investor who is long a call option is one who buys a call with the expectation
that the underlying security will increase in value.
When an investor sells a call option, the transaction is called a short call.

Forwards:
A forward contract is a customized derivative contract obligating counterparties to
buy (receive) or sell (deliver) an asset at a specified price on a future date.
The party that agrees to buy the asset, is taking a long position. The party that is
selling is taking a short position.
Futures:
Futures contracts allow hedgers and speculators to trade the price of an asset that
will settle for delivery at a future date in the present.

Systematic Risk:
Systematic risk refers to the risk inherent to the entire market or market segment.
Systematic risk, also known as undiversifiable risk, volatility risk, or market risk,
affects the overall market, not just a particular stock or industry.

Un-Systematic Risk:
Unsystematic risk refers to risks that are not shared with a wider market or
industry. Unsystematic risks are often specific to an individual company, due to
their management, financial obligations, or location. Unlike systematic risks,
unsystematic risks can be reduced by diversifying one's investments.

Credit Risk:
Credit risk is the probability of a financial loss resulting from a borrower's failure
to repay a loan. Essentially, credit risk refers to the risk that a lender may not
receive the owed principal and interest, which results in an interruption of cash
flows and increased costs for collection.

Default Risk:
Default risk is the risk a lender takes that a borrower will not make the required
payments on a debt obligation, such as a loan, a bond, or a credit card. Lenders
and investors are exposed to default risk in virtually all forms of credit offerings.

Insurance Coverage:
Insurance coverage refers to the amount of risk or liability that is covered for an
individual or entity by way of insurance services. The most common types of
insurance coverage include auto insurance, life insurance and homeowners
insurance.

Wealth Management:
Wealth management is an investment advisory service that combines other
financial services to address the needs of affluent clients. A wealth management
advisor is a high-level professional who manages an affluent client's wealth
holistically, typically for one set fee.