Total Return

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

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

Total return encompasses dividends, capital gains, interest, and distributions realised. It should also deduct any fees and costs associated with holding the fund.

It is expressed as a percentage of the initial investment.

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Compound interest

Understand what compound interest means and how it's calculated
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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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Unicorn

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

A measure of how much the prices of an asset or index vary over time.
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Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.
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Earnings per share

We look at what earnings per share mean and how to calculate it
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Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.
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Clean price

The quoted price of a gilt, which excludes accrued interest
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Equity

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