Buying and holding assets, such as shares, bonds, property and commodities, to earn income or to make capital gains.
Percentage rate at which money is added to savings or borrowings. The cost of borrowing or lending money.
A contract taken out with an insurer to protect against loss from a perceived risk. The person taking out the insurance is called the insured. Payments for the policy are called premiums.
The first time a company lists on the stock exchange, and asks investors to buy shares in it, is known as an IPO, new share issue, or flotation.
A set-up fee paid on some unit-linked investment policies.
An insurance policy is "in force" from its start date until the date it is terminated.
An increase in the general level of prices over a period of time. Opposite of deflation.
It is a tool which can be used to offset the effect of inflation on one's investments.
Explanation of benefits of an insurance plan
An investment fund that aims to generate current income in the form of dividends or payments from stocks and bonds, rather than capital growth. Income funds are regarded as conservative investment, and tend to be popular with retirees and other investors looking for a steady cash flow without taking on too much risk.