What is a 'hedge fund'? Definition & meaning

More terms

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Inflation

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

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Fundamentals

The data or information that is likely to impact a company's stock price.

Collective investment scheme

Learn what's a collective investment scheme

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

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Hedge Fund