The tax paid on any profit or gain made by selling something for more than it was bought.

The profit made on the sale of investments, such as shares or property.

Money invested typically in buildings and machinery.

Typically a stock market index (for example, the Sensex, Nifty) against which an investment fund compares its performance and mix of assets.

An investor who expects share prices to fall or, more generally, has a pessimistic outlook about the market. A bear market is a period of falling share prices.

An arrangement whereby banks and building societies sell insurance and investment products to their customers on behalf of other financial providers.

A statement showing the financial position of a business on a specific date by listing its assets (what it owns) and its liabilities (the claims on its assets, or what it owes).

Someone who uses applied mathematics (in particular, probability) to provide solutions to insurance-related problems. Actuarial techniques are used to design new insurance products and to assess the profitability of new and existing business.

A style of investment management where the fund manger seeks to improve returns or reduce costs by using their expertise to choose which stocks or bonds to buy and sell. The opposite of passive management, where the manager aims to match the performance of a market or index by replicating the composition of that market or index in their fund.

Achieved profit is designed to recognise profit as it is earned over the lifetime of an insurance policy. Achieved profit is made up of operating profit plus investment variances, changes in economic assumptions and any exceptional items. It reflects the current value of in-force business and the net worth of long-term savings operations, adjusted for dividends paid out or capital reinvested. From year-end 2004, Aviva plc reports using European embedded value methodology and not achieved profit. See also embedded value.