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Retail Prices Index (RPI)

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

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Net asset value

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

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.
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Custodian bank

Learn what a custodian bank is.
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Maturity value

What's the maturity value of a bond?
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Internal Rate of Return (IRR)

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

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.
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