What are 'index-linked gilts'? Definition & meaning

More terms

Conventional gilts

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).

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

S&P 500

Find out what is the definition of the S&P 500 index.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Index-linked gilts