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/diversified 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.
Dividend Dividends represent a share in the profits of the company and are paid out to a company’s shareholders at set times of the year.
Emerging markets Economies in the process of rapid growth and increasing industrialisation. Investments in emerging markets are generally considered to be riskier than those in developed markets.
Equities Shares of ownership in a company.
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.