This section explains the meaning of some of the financial terms used on this site listed alphabetically.


Additional employer contributions

Contributions made by your employer, on your behalf, into a complying superannuation fund, that are over and above what is required by law.

Additional investment

The second and subsequent deposit transactions you make.

Allocated pension

A specially structured investment that delivers periodic payments within limits prescribed by law, until the entire account balance is exhausted or the death of the annuitant.


An investment normally referring to financial assets, such as shares, bonds, property, cash or units in a managed fund.

Asset allocation

The mix of assets in an investment among various asset classes or sectors.



The amount of money in total you have in an investment.


A debt asset that an investor (lender) purchases from the government, semi-government, or a company (borrower) in return for cash. The borrower uses the investor's money, issues the investor with a bond as proof of the loan, and, subject to any specific payment terms, pays interest and principle back to the investor in return for the loan.


An individual, company or government that accepts money off a lender, and agrees to pay it back with some form of interest.

Business expense insurance cover

Insurance that pays for certain business expenses incurred as a result of you not being able to operate your business, resulting from particular events.


Capital gain

Increases in the value of an asset or investment between the purchase price and sale price of an asset.

Capital loss

Decreases in the value of an asset or investment between the purchase price and sale price of an asset.


Refers to financial assets such as treasury notes that have very short maturity dates and are backed by either large banks or the government and as a result are very liquid.

Complying superannuation fund

A superannuation fund that qualifies for concessional tax treatment after having met prescribed government standards.


Direct property

Real estate investments held directly by an investor.


Employer super

A complying superannuation fund that accepts superannuation guarantee contributions and additional employer contributions.

Entry price

The unit price allocated to investors who wish to invest money in a managed fund.

Entry Fee option

A fee deducted from each contribution you make into your investment. See Nil Entry Fee option.


See "share".

Exit fee

A fee deducted from your investment on exiting the investment.

Exit price

The unit price allocated to investors who wish to take money out of a managed fund.


Financial adviser

Someone whose profession it is to understand and advise on financial issues. A licenced financial adviser is obliged to act solely in the interests of the client.

Fund manager

A company that specialises in managing investments.


Growth returns

The portion of an investor's return that results from capital gains (positive growth returns) or capital losses (negative growth returns).


Immediate annuity

A specially structured Investment that delivers fixed payments over a fixed term and commences after purchase.


Generally any money received including wages or salary; social security payments or Income returns.

Income Protection Cover

Insurance that pays you a percentage of your income should you become unable to earn your income as a result of a particular event.

Income returns

Payments made to an investor or an investor's account which are derived from an investment.

Initial investment

The first deposit transaction you make into an investment.


A financial strategy where you, the insured, pay a fee called a premium in return for financial protection against a future possible event.


A return paid to a investor or lender. Normally expressed as a percentage of the principal.


An asset usually purchased with the purpose of producing an income or capital gain.

Investment bond

The specially structured Investment that requires you to invest your money for a minimum term.


Managed Fund

A professionally managed Investment where an investor's money is pooled with other investors' money. Each individual investor participates in the returns of the underlying investment assets. Each investor's ownership in a managed fund investment is expressed in Units.

Manage the manager

An Investment process. A Fund manager who practices this process accepts your Investment and then employs other specialist fund managers to invest the money into financial assets. This process means that by investing in one fund manager, you receive the benefit of the expertise of numerous specialised Fund managers.


Nil Entry Fee option

A fee structure where no fee is deducted from contributions made to your investment.


Personal insurance

Broadly describes insurance policies that cover personal property and/or health.

Physical Currency

Money in the form of notes and coins or deposits.


A collection of investments of a particular superannuation fund or managed fund.


The original amount of money advanced to a borrower or investor.


A class of financial asset which includes commercial, industrial, and residential real estate.


Real estate

Land and buildings.


The yield (positive or negative) an investor gets for investing.


The possibility of something unpleasant occurring including the likelihood of a loss or failing to meet a goal.


Salary Sacrifice Contributions

Contributions made by you, to a complying superannuation fund, taken out of your pre-tax wages or salary.


A partial ownership in a listed company.


See "Share".


A long-term savings arrangement operated primarily for the sole purpose of providing retirement income.

Superannuation guarantee contributions

Money that, by law, your employer must invest on your behalf into a complying superannuation fund.

Superannuation money

Monies paid into a superannuation arrangement.


A transaction that involves moving assets from one investment to another.


Term allocated pension

A specially structured Investment that delivers periodic payments over a fixed term. Payments will vary with changes in the account balance and the term remaining.

Total and Permanent Disablement (TPD) Insurance Cover

Insurance against an event that results in a person becoming totally and permanently disabled.

Trauma Insurance Cover

Insurance against a particular traumatic medical event such as cancer.


Undeducted contributions

Contributions made by you, to a complying superannuation fund, on which you have paid tax.


A partial holding in a managed fund.

Unit price

The price of one unit in a managed fund.

Unit Trust

A pooled investment where a number of investors hold units in a managed fund.



Fluctuations in the returns of an investment.