Compare The Platform: Jargon

Active funds - Active funds are run by fund managers who aim to deliver a return higher than the market average. Fund managers will have access to extensive research to help them choose their investments. There is the potential for higher returns than a passive fund, and hence the fees charged are generally higher. ... More

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Annuity - An annuity is an annual retirement income that is paid out for the rest of your life. ... More

During your working life, you save into a pension pot. At retirement, you can then use this pot to purchase an insurance policy called an annuity, which pays regular monthly or yearly income.  Annuities used to be mandatory, but the government introduced pension freedom in 2015, allowing investors to choose how to manage their income.  Annuities are one of the many tools available to investors. Click here for more info on pensions.

Bond - A bond is like an IOU from a company or Government. If an organisation needs to borrow money to fund a large project, it may be unable to access all it needs from a bank, so it raises money by issuing bonds to the public. The bond issuer then pays interest to the investor for loaning the money. Bonds are typically less risky than stocks and shares. ... More

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Custody Fees - These are the fees paid when investing in a fund which goes to the custodian of the fund. ... More

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Equities - Equities are stocks and shares. They are a share in the ownership of the company. In return for owning stocks, you get a share of any profits (called a dividend) and the possibility that the value of your shares will increase over time. But they carry risk: there is no guarantee share value will go up (it could also go down), or that a company will pay out a dividend. ... More

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ETFs - Exchange-traded funds are funds that can be traded on the stock exchange much like stocks. Most ETFs are passive funds, and as a result, the fee charged will typically be lower than that of an active fund. ... More

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Fund - A fund pools together money from individual investors, and spreads it across various investments.  It is managed by a fund manager, who will aim to pick the best investments so that your money grows ahead of the average rate. By spreading your investments across assets, funds enable you to access opportunities more easily than if you did it yourself, while also spreading the risk. ... More

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General investment account (GIA) - A General Investment Account is a flexible account where you can keep investments (e.g. funds, stocks and shares) and savings. Unlike ISAs and SIPPs it does not have any tax benefits, and is often used once an investor’s annual tax-free allowances have been used up.
Investment trusts - Investment trusts are a type of investment fund. They are ‘closed-ended’, meaning a fixed number of shares are issued, which can then be bought and sold on the stock market. ... More

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Investments - Investments are shares, property and other assets that carry a level of risk, but the possibility of greater returns than cash savings can typically offer. ... More

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ISA - An ISA (or Individual Savings Account) is a tax-free way to save or invest. If you're starting to think about saving or investing, ISAs could be a good place to begin. Any interest or gains are essentially tax-free. The annual allowance for the 2015/16 tax year is £15,240 which can be invested in cash or stocks & shares ISAs. ... More

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JISA - A Junior ISA, like a regular ISA, is a tax-free savings or investment account held in a child’s name. ... More

It cannot be accessed by them until they reach 18, at which point it becomes an adult ISA. The annual allowance in the 2015/16 tax year is £4,080, and can be split into cash and/or stocks and shares JISAs.

Junior Sipp - A Junior SIPP is a pension pot set up in a child’s name by their parent or guardian. ... More

It is tax-exempt, and cannot be accessed until 10 years before the state retirement age. The annual maximum contribution allowance is currently £2,880, and the Government automatically adds up to 20% tax relief (maximum £720).

OEICs - Open-ended investment companies operate in a similar way to unit trusts, except the fund is run as a company. You buy shares of the company (fund) rather than units. ... More

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Passive funds/trackers - Passive funds track a market, meaning they aim to perform in line with the market average. They are generally run by a computer and are lower risk than active funds (with a lower fee). ... More

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Pension Drawdown - With a pension drawdown, your pension pot stays invested, but you can draw a regular income from it. It means you can keep your money invested and hence benefit from any potential growth, without being taxed. ... More

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SIPP - A Self Invested Personal Pension is a private pension which offers a high degree of flexibility regarding where you choose your investments to go. ... More

The level of flexibility you have will depend on the type of SIPP you choose. Like all pensions, it is a highly tax-efficient way to save for your retirement.

Platform - A platform is a single place where all your investments (be it ISAs, SIPPs, stocks and shares) can be held. ... More

Rather than having separate investments in lots of different places, they can all be kept under one roof (like a financial supermarket), which can make things simpler to manage and more cost-effective. Click here for more info on platforms.

Savings - This is money kept in a bank or building society. ... More

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Trading fees - These are the fees associated with buying or selling stocks and shares. ... More

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Unit trusts - Unit trusts are the most popular type of investment fund. A fund manager buys assets for the fund, which are pooled together. The fund is then broken down into units, which are sold to investors. These types of funds are ‘open-ended’, which means the fund manager can create additional units when required. ... More

Click here for our guide to different types of investment funds.