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 RaboPlus 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

Real Rate of Return: The return on an investment after it is adjusted for the effects of inflation.
Redemption: The process of converting an investment into cash.
Reserve Bank of Australia (RBA): The Reserve Bank of Australia is responsible for monetary policy. Major roles of the RBA are achieving low and stable inflation, maintaining financial system stability and promoting the safety and efficiency of the payments system. The RBA is an active participant in financial markets, manages Australia's foreign reserves, issues Australian currency notes and serves as banker to the Commonwealth Government.
Responsible Entity: The operator of a managed investment scheme – as named in the Australian Securities and Investments Commission (ASIC). The Responsible Entity must be a public company and must hold an Australian Financial Services licence from ASIC.
Return: The amount of money your investment earns, usually expressed as a percentage. Also known as investment performance.
Risk: In its simplest sense, risk is the variability of returns. There are many different types of risk including manager risk, market risk and currency risk.
Risk Tolerance: A person's ability or willingness to tolerate declines in the value of their investments while they wait for them to return a profit.