Dictionary
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Coupon

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

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Volatility

A measure of how much the prices of an asset or index vary over time.
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Professional Client

An investor that is able to meet several regulatory criteria.
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Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.
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Costs and Charges

The money you pay when investing.
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Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
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Total Return

This is the measurement of a fund’s performance in a specific period.
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Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.
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Zero-Sum Game

A situation in which one person's gain is another's loss.
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OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.
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