Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Human capital refers to the present value of a person’s future earning potential from work, treated as an asset alongside financial investments in holistic financial planning.
The economic value of your future earning ability, treated like an invisible asset.
Early in a career, human capital is large relative to financial capital, suggesting higher risk tolerance in investments; it should be insured (via term insurance) against premature loss.
A 25-year-old with decades of earning potential ahead has high human capital relative to their current savings.
The economic value of your future earning ability, treated like an invisible asset.
Human Capital (Finance) helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.