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.


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


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.


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.


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


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


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


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.


The current general direction of movement security or commodity prices.

Vacancy rate

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


The seller of an asset.


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


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

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