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Share
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A type of security that signifies ownership in a company and represents a claim on part of the company’s assets and earnings.
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Growth Stocks
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Shares of companies expected to grow at an above-average rate compared to other companies.
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Value Stocks
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Shares considered undervalued based on fundamental analysis.
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Asset Allocation
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The process of distributing investments among different asset classes such as stocks, bonds, and cash to optimize the risk-return ratio according to the investor’s goals and risk tolerance.
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Alpha
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A measure of a fund’s performance on a risk-adjusted basis. It represents the value a portfolio manager adds to or subtracts from a fund’s return.
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Benchmark
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A reference index used to evaluate the performance of a fund or portfolio.
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Beta
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A measure of a fund’s volatility relative to the market. A beta of 1 indicates the fund moves with the market; a beta below 1 indicates lower volatility.
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Green Bond
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A bond issued to finance projects with environmental benefits.
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Market Capitalization
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The total market value of a company’s outstanding shares, calculated by multiplying the current share price by the number of outstanding shares.
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Consumer Discretionary
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Economic sector including non-essential goods and services that consumers buy when they have disposable income.
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Consumer Staples
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Economic sector including essential goods and services that consumers purchase regardless of the economic situation.
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Coupon
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The interest rate paid by bond issuers on the bond’s face value.
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Investment Grade
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A bond or debt security with a high credit rating, indicating low default risk.
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Maturity Date
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The date on which the principal amount of a bond must be fully repaid.
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Diversification
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The practice of spreading investments across various financial instruments, industries, and categories to reduce risk.
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Dividend
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A portion of a company’s profits distributed to shareholders.
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Energy
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Economic sector including companies involved in the production and distribution of energy.
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ESMA (European Securities and Markets Authority)
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An independent EU authority that contributes to the stability of the EU financial system by enhancing investor protection and promoting stable and orderly financial markets.
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Finance
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Economic sector including companies providing financial services such as banks, insurance companies, and asset managers.
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Mixed Asset Fund
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An investment fund that invests in a mix of asset classes, including stocks, bonds, and other securities.
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Equity Fund
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An investment fund that primarily invests in stocks.
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Balanced Fund
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A type of mixed asset fund aiming to provide a balanced mix of safety, income, and capital appreciation by investing in a combination of stocks and bonds.
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Bond Fund
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An investment fund that primarily invests in bonds.
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UCITS Fund
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A regulatory framework that allows the cross-border sale of investment funds within the EU. UCITS funds are designed to be safe and liquid investments.
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Real Estate
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Economic sector including companies involved in owning, managing, and developing real estate.
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Industry
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Economic sector including companies involved in the production of industrial goods and services.
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KID (Key Information Document)
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A standardized document providing essential information about a fund, including its objectives, risks, costs, and past performance, to help investors make informed decisions.
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Liquidity
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The ease with which an asset can be converted into cash without affecting its market price.
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Materials
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Economic sector including companies involved in the production of raw materials and chemicals.
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NAV (Net Asset Value)
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The total value of a fund’s assets minus its liabilities, divided by the number of outstanding shares.
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Credit Rating
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An assessment of a borrower’s creditworthiness in general or in relation to a specific debt or bond.
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Bond
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A fixed-income instrument representing a loan made by an investor to a borrower (typically a company or government).
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OECD
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The Organisation for Economic Co-operation and Development is an international organization promoting policies that improve the economic and social well-being of people.
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Emerging Markets
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Rapidly developing countries with growing economies.
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Risk Profile
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An assessment of an individual’s willingness and ability to take risks, often used to determine appropriate asset allocation.
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Prospectus
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A legal document providing details about an investment offering to the public, including objectives, strategies, risks, performance, and fees.
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Investment Grade (Quality)
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A rating indicating relatively low default risk.
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Sharpe Ratio
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A measure of risk-adjusted return, calculated by subtracting the risk-free rate from the portfolio return and dividing by the standard deviation of the excess return.
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Yield
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The return on an investment, such as interest or dividends received from holding a particular security.
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Healthcare
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Economic sector including companies providing healthcare services and medical products.
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Utilities
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Economic sector including companies providing public services such as water, electricity, and gas.
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Information Technology
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Economic sector including companies providing technology products and services such as software, hardware, and IT services.
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Telecommunications
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Economic sector including companies providing communication services such as telephone and internet.
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Volatility
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A statistical measure of the dispersion of returns for a given security or market index. Higher volatility indicates higher risk.
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