What is 'Packaged Retail and Insurance-based Investment Product (PRIIP)'?

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

More terms

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

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).

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.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Collective investment scheme

Learn what's a collective investment scheme

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

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

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Packaged Retail and Insurance-based Investment Product (PRIIP)