Attitude to Risk: An individual's comfort level with taking on financial risk in their investments. A higher attitude to risk means a person is willing to accept more risk in their investments in the pursuit of higher returns, while a lower attitude to risk means a person prefers more stability and is willing to accept lower returns.

Bond (Corporate or Government): A type of investment where an investor loans money to a company or government in exchange for fixed interest payments over a set period of time. At the end of the bond term, the original loan amount is returned to the investor.

Capacity for Loss: An individual's ability to absorb financial losses in their investments without causing significant harm to their financial situation. Capacity for loss should be considered when determining an individual's attitude to risk and investment strategy.

Cash ISAs: A type of Individual Savings Account (ISA) that allows the investor to save money tax-free. Unlike other ISAs, cash ISAs typically offer a lower return in exchange for greater stability and security.

Child Trust Fund: A savings account for children, typically set up by parents or grandparents, that has favorable tax treatment and can be used to save for a child's future expenses, such as education or a first home.

Commodity: A physical good, such as agricultural products, metals, or energy, that is traded on markets. Commodities can be bought and sold as investments, and their prices are influenced by supply and demand dynamics.

Correlation: A statistical measure of the relationship between two sets of data, such as the performance of two different investments. A high correlation means that the two sets of data tend to move in the same direction, while a low correlation means that the data sets tend to move in opposite directions.

Crowdfunding: A method of raising funds for a project or business by soliciting small contributions from a large number of people, usually through the internet. Crowdfunding can be used to finance start-ups, creative projects, or community initiatives.

Diversify: The practice of spreading investments across multiple asset classes, industries, and countries to reduce overall risk. Diversification is an important aspect of investment strategy as it can help reduce the impact of negative performance in one area on the overall portfolio.

Dividend: A dividend is a portion of a company's earnings that is paid out to shareholders. It is a way for companies to reward their investors for holding their stock. Dividends are usually paid out quarterly or annually and are expressed as a percentage of the stock's current value. They can provide a source of income for investors who are looking to generate passive income from their investments.

Enterprise Investment Scheme (EIS): EIS is a UK government-backed scheme that provides tax incentives for individual investors who invest in small, early-stage companies. The scheme is designed to encourage investment in companies that are considered to be high-risk, but which also have the potential for high returns. Investors who participate in the EIS scheme may be eligible for tax relief on their investment, which can reduce the amount of tax they owe.

Equity: Equity refers to ownership in a company, usually in the form of stocks or shares. When you buy stock in a company, you become a shareholder and own a portion of the company. Equity investments can provide the opportunity for growth, as the value of the stock can increase over time.

Exchange Traded Fund (ETF): An ETF is a type of investment fund that tracks a specific index, such as the S&P 500, or a basket of assets, such as a collection of stocks, bonds, or commodities. ETFs are traded on stock exchanges and provide a way for investors to gain exposure to a wide range of assets without having to purchase each one individually.

Fund: A fund is a pool of investments, such as stocks, bonds, or other assets, that are managed by a professional investment manager. Funds provide a way for investors to diversify their portfolio and gain exposure to a range of assets that they may not have the expertise to invest in individually.

Gilt: A gilt is a type of bond issued by the UK government. Gilts are considered to be low-risk investments as they are backed by the government, but they may not provide high returns. Gilts are usually considered to be a safe haven for investors, as their value does not tend to fluctuate as much as other types of investments.

Help to Buy ISA: A Help to Buy ISA is a type of ISA (Individual Savings Account) specifically designed to help first-time home buyers save for a deposit on a property. The government will add a 25% bonus to the savings in the ISA, up to a maximum of £3,000. The funds can then be used to help pay for a deposit on a property, up to a value of £250,000 (or £450,000 in London).

Impact Investment: Impact investing is a type of investment that seeks to generate a positive social or environmental impact in addition to financial returns. This type of investment is focused on supporting initiatives that address social or environmental challenges, such as clean energy or affordable housing.

Index (Stock Market) - An index is a statistical measure that represents the performance of a specific portion of the stock market. For example, the S&P 500 Index tracks the performance of the 500 largest publicly traded companies in the US. An index fund is an investment vehicle that tracks the performance of a specific stock market index.

Individual Savings Account (ISA) - ISAs are tax-free savings and investment accounts offered by the UK government. There are several different types of ISAs, including Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs. Each type offers different investment options and tax benefits.

Innovative Finance ISAs - An Innovative Finance ISA is a type of ISA that allows you to invest in alternative finance opportunities, such as peer-to-peer loans, and receive tax benefits on the returns earned.

Investment Bond - An investment bond is a type of savings plan that lets you invest a lump sum of money into a portfolio of investments and receive returns over a fixed period of time, usually 3-5 years. Investment bonds are usually issued by insurance companies.

Investment Trust - An investment trust is a type of investment fund that is structured as a company. The company's shares are publicly traded on a stock exchange and its primary goal is to provide returns to its shareholders through investments in a diverse portfolio of assets.

Junior ISA - A Junior ISA is a tax-free savings account specifically designed for children under the age of 18. The money saved in a Junior ISA can be used to help pay for education, housing, or any other expenses when the child reaches the age of 18.

Lifetime ISAs - A Lifetime ISA is a type of ISA that allows you to save up to £4,000 each year and receive a 25% bonus from the UK government. The money saved in a Lifetime ISA can be used to buy a first home or can be accessed at age 60 without penalty.

Multi-asset investment funds - Multi-asset investment funds are investment funds that invest in a variety of asset classes, including stocks, bonds, commodities, and real estate. The goal of a multi-asset investment fund is to diversify risk and provide more stable returns.

Multi-manager funds - Multi-manager funds are investment funds that invest in a variety of other investment funds. The goal of a multi-manager fund is to provide diversification and a better return on investment by spreading the risk across multiple funds.

Net Asset Value (NAV) - The net asset value (NAV) of an investment fund is its total assets minus its liabilities, divided by the number of outstanding shares. The NAV is used to calculate the price per share of an investment fund.

Open-ended Investment Company (OEIC) - An open-ended investment company (OEIC) is a type of investment fund that issues and redeems shares based on the underlying value of its assets. The number of shares issued by an OEIC can increase or decrease in response to investor demand.

Passively Managed Investment Fund - A passively managed investment fund is an investment fund that tracks the performance of a specific stock market index or other benchmark. The fund's portfolio is designed to closely match the performance of the benchmark, and the fund's manager does not actively buy and sell assets to try to beat the benchmark.

Personal Equity Plans (PEPs) - Personal Equity Plans (PEPs) were tax-free savings plans offered by the UK government in the 1990s. PEPs have been replaced by ISAs and are no longer available for new investments.

Unit trust: A type of investment fund that pools together money from multiple investors to purchase a variety of assets such as stocks and bonds. Unit trusts are professionally managed by fund managers and the investments are divided into units, each representing a fraction of the fund's holdings. Unit trusts are an easy way for individual investors to gain exposure to a diverse range of assets without having to buy and manage them directly.

Venture capital: A type of investment that provides funding to early-stage companies with high growth potential. Venture capital firms invest money into start-up businesses in exchange for equity and a share in the company's future profits. Venture capital is often seen as a higher risk investment as it is focused on unproven businesses, but it can also offer higher potential returns compared to other types of investment.

Venture capital trusts (VCTs): A type of investment trust that provides capital to small, unquoted companies in exchange for shares. VCTs are similar to venture capital firms, but the difference is that they are listed on the stock exchange and are therefore open to individual investors. VCTs are tax-advantaged and offer investors a number of tax benefits, making them an attractive investment option for those seeking to invest in small businesses.

Wrap (account): A type of investment platform that allows investors to consolidate their investments into one place, making it easier to manage and monitor their portfolios. Wrap accounts typically offer a range of investment products, including unit trusts, investment trusts, and exchange-traded funds (ETFs), and can provide investors with a more streamlined and cost-effective way of managing their investments.

Wrapper: A type of investment vehicle that is designed to hold investment products, such as unit trusts, investment trusts, and exchange-traded funds (ETFs). Wrappers provide a convenient and flexible way for investors to hold multiple investments in one place, making it easier to manage their portfolios and monitor their investments.

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