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

S&P/ASX 200 Index: The S&P/ASX 200 index is a stock market index of Australian stocks listed on the Australian Stock Exchange from Standard & Poor's. The S&P/ASX 200 index is a benchmark for the Australian share market.
Sector: A group of securities that share common characteristics, for example, resources sector, textiles sector.
Self Managed Superannuation Fund: A superannuation fund with only one member or with less than five members that meets the following conditions: 1). Each individual trustee of the fund is a fund member, 2). Each member of the fund is a trustee, 3). No member of the fund is an employee of another member of the fund, unless those members are related and 4). No trustee of the fund receives any remuneration for his or her services as a trustee.
Shares: Securities issued by companies to raise money in exchange for part ownership in the company and generally an entitlement to a portion of the profits made by the company. Also known as equities and stocks.
Short Selling: The act of borrowing stock to sell with the expectation of price dropping and the intent of buying the stock back at a later date when the price has fallen and a profit can be made. The Corporations Act imposes strict limitations on when short selling is permitted.
Short-Term: In investments, short-term generally represents a period of less than one year.
Single-Sector Fund: A managed investment that invests in a single asset class, such as Australian shares.
Standard Deviation: A statistical measure of the extent to which returns deviate from the mean or average. The smaller the difference, the lower the standard deviation will be and the greater the degree of stability you can expect from the investment. It is the most common way to measure the risk of an investment.
Superannuation Fund: A fund established primarily to provide benefits for members on their retirement. Members contribute to the fund from their salary and take an income from the fund on retirement. Also known as a super scheme and super plan.
Switch: A transaction where an investor transfers either between two funds or components of a scheme e.g. between a growth fund and a balanced fund.