Key investment words – explained

Asset Management
This means managing a financial asset, for example a property fund or share fund with the aim of maximising income, reducing risk and generating the expected return.

Bond Fund
This uses pooled funds from a number of investors to purchase bonds and offer investors a stable, low risk income.

Capital Security
This is the level of security attached to the capital you invest in a product. Cash deposits, for instance have 100% capital security because you always get back at least the amount you invested.

Capital Growth
This is the growth of your original investment amount, before any tax or charges are applied.

Commodity
A tradable item that can generally be further processed and sold; i.e. metals, wheat, coal, etc.

Correlation
The degree to which two or more asset values move in the same direction.

Emerging Markets
Share markets in newer economies, for example, Asia and South America. These markets are usually fast-moving and offer strong returns but they can be high risk.

Equity Fund
A mutual fund investing in company shares.

Fixed-Income bond
A debt bond issued by a company or government.

Fund Price
For mutual funds this is the total value of the portfolio, less its liabilities, often known as its Net Asset Value. Liabilities can include the cost of selling the asset.

Fund value
The value of the fund, is calculated by multiplying the number of units by the unit price.
For example: If you have 100 units in a fund and each one is worth €1.50. The fund value is €150.

Index
The measure of price movement in financial markets.

Investment or Mutual Funds
Investors’ money buys units in an investment or mutual fund which then invests in a portfolio of assets, such as shares, currencies, properties and others.

Mixed Funds
An investment fund invested in different investments for example property bonds and shares.

Managed Fund
Pooled funds from a number of investors that is used to buy assets such as shares, properties and commodities and managed on their behalf by professional fund managers.

Portfolio
A collection of investment assets, such as cash, bonds, property and others.

Return
The amount of money received yearly from an investment, usually expressed as a percentage.

Risk
The chance that an investment’s actual return will be different than expected.

Take-up
The amount of additional space leased in a property market in a given period.

Total return
The capital growth plus the income return on an asset.

Trend
The current general direction of movement security or commodity prices.

Vacancy rate
The percentage un-let space in a given property market.

Vendor
The seller of an asset.

Volatility
How much an investment or market can rise or fall, usually in the short term.

Yield
The income return on an investment expresses as an annual percentage of the value of the underlying asset.

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Irish Life Financial Services ltd. is regulated by the Central Bank of Ireland. Irish Life Assurance plc. is regulated by the Central Bank of Ireland.
Irish Life Financial Services ltd and Irish Life Assurance plc Registered Office - Lower Abbey Street, PO Box 129, Freepost, Dublin 1. Phone: 01 704 2000, E-mail: customerservice@irishlife.ie.
Irish Life Financial Services Registered Number 489221. Irish Life Assurance plc Registered Number 152576.
In the interest of customer service, we will record and monitor calls.

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