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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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NASDAQ

A US stock exchange specialising in the shares of technology companies.
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Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.
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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.
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Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.
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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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Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.
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Bed & ISA

Understand what Bed and ISA is and how it works
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