Term Definition
Asset Anything having commercial or exchange value that is owned by a business, institution or individual
Capital growth
Occurs when the current value of an investment is greater than the initial amount invested.
Diversification The practice of investing in a variety of assets. This is a risk management technique where, in a well-diversified portfolio, any loss from an individual holding should be offset by gains in other holdings, thereby lessening the impact on the overall portfolio.
Risk The chance that an investment's return will be different to what is expected. Risk includes the possibility of losing some or all of the original investment.