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Interest Rate

Interest Rate

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

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

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Annualised Rate of Return

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

Mutual funds and investment trusts are priced on their net asset value (NAV).
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Volatility

A measure of how much the prices of an asset or index vary over time.
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Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.
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Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.
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Yield

Income from an investment as a percentage of its current price.
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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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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.
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Base rate

What's the base rate?
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