Dictionary
/
Conventional gilts

Conventional gilt

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

More terms

Yield to maturity (YTM)

What is yield to maturity and why is it useful?
Read more

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.
Read more

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.
Read more

Income statement

A summary of a company's income and expenses over a set period of time.
Read more

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.
Read more

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.
Read more

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.
Read more

Custodian bank

Learn what a custodian bank is.
Read more

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.
Read more

You’re just minutes away from commission-free investing

open an isa
When you invest, your capital is at risk

Freetrade is your gateway to commission-free investing. Join over 1.6 million users using the Best online trading platform, as voted at the British Bank Awards for six years running.

Accounts
Customer Support
Resources
Company
Important information

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.

Follow us on