The most important terms from the world of funds - arranged alphabetically. Click one of the letters to display the relevant terms.
Market capitalisation (= capitalisation of the securities) means the total value of a company on the stock market. This is arrived at by multiplying the market value of an equity by the total number of equities.
These are investments in investment instruments whose goal is to achieve positive returns independently of the performance of the bonds and equity markets. This objective may be achieved through exploiting inefficiencies within a market or between several markets, for example. The returns from market-neutral investments normally show a lower correlation to equity or bond returns and are therefore ideally suited to risk diversification for managed securities safe custody accounts.
Mixed funds invest in equities and bonds. The return objective is therefore based on growth and earnings.
Modern Portfolio Theory
At the heart of the modern portfolio theory are the systematic connections between the risk of individual investment opportunities and their expected returns. The requirement for successful investment is therefore recognising the corresponding risk or return of an investment. Risk is not understood as the probability of a loss but rather as a possible range of fluctuations of the actual realised returns around an average value. In practice the future return expectations used frequently come from prognoses, risk evaluation from historical data. These figures are the result of statistical calculations.
The money market is the market for short-term credit balances or bonds with terms under 12 months.
Money Market Funds
Securities funds that invest their funds in money market securities.
The MSCI World is a global equity index that lists the performance of the developed equity markets. The index is used globally as a comparison value for international equity portfolios.