Hedge Fund

What is a gilt?

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.

The concept that money you have now is more valuable than the same sum in the future.

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

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

The currency exchange rate a bank quotes, valid with immediate effect.

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.