What is 'Index-linked gilts'? | Freetrade Dictionary

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).

Total Return

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

Maturity value

What's the maturity value of a bond?

UK Treasury bill

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

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.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

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.

S&P 500

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

Equity

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

Index-linked gilts