Glossary of terms

No doubt you've heard the term 'financial jargon'. This glossary provides you with a simple guide to the investment terms you'll find on the RaboDirect website. Click on the alphabet letters below to help yourself to a clearer understanding.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Passive Management: A style of investment management that aims to achieve investment returns in line with those of a specified market or index. Also known as Index management.
Portfolio: A collection of investments, often of an individual, a fund or investment manager.
Price to Earnings Ratio (P/E Ratio): A method of valuing stocks, calculated by dividing the closing price of a company's shares by its annual earnings per share. Growth shares tend to have high P/E ratios compared to income shares.
Product Disclosure Statement (PDS): A document your financial advisor must provide when offering a financial product to you. It contains key product information including fees that apply and risks involved in investing.
Profit Taking: Selling securities after they have risen in value to realise a gain.
Property: One of the major asset classes. Property investments are varied and can include: commercial, industrial, residential and rural real estate. Property is considered a growth asset.
Property (Direct): Refers to direct holdings of real estates but also refers to unlisted trusts that directly hold investments in real property.
Public Offer Funds: These are superannuation funds marketed to the public at large, generally not standard employer sponsored and are subject to rules defined under the Superannuation Industry (Supervision) Act 1993.