Investment jargon buster
In partnership with M&G Investments, this is a useful reference for investment jargon words and acronyms: their meanings, definitions and links to further reading.
Asset allocation – The process of deciding what proportion of your portfolio to invest in which type of asset or market sector
Bond – A loan in the form of a security, usually issued by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the initial amount borrowed is repaid.
Consumer Prices Index (CPI) – An index used to measure inflation, which is the rate of change of prices for a basket of goods and services. The contents of the basket are meant to be representative of products and services we typically spend our money on
Distribution – Refers to the periodical paying-out of interest or dividends received by funds to their shareholders. Dividends represent a share in the profits of a company and are paid out to the owners at certain times during the year.
Last updated: 29 June 2016