Glossary of common financial terms

A style of investment management that seeks to achieve investment returns above a set benchmark by constantly monitoring and, if necessary, changing asset allocation and security selection.

The increase in the value of an asset.

A representation of how a portfolio is invested among the various available asset classes. For example, a balanced fund may have an asset allocation of 30% New Zealand and Australian shares, 25% international shares, 10% property, 20% fixed interest, 10% international fixed interest, 5% cash.

Types of investments, such as shares, fixed interest securities, property, cash and international investments.

An adult who operates an account on behalf of an account owner who is under 18.

RaboDirect will automatically reinvest a matured term deposit onto a new term deposit of the same period, at the interest rate applicable at the time of reinvestment.