Volatility

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.

A method of trading using borrowed money that usually involves a very high level of risk.

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

The amount of money generated by an asset during the time that it was held by an investor..

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

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.

The increase in the prices of goods and services over time, and the process by which money loses its value.

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

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