The most important terms from the world of funds - arranged alphabetically. Click one of the letters to display the relevant terms.
Raiffeisen Fund Provision
This means the combination of investing in investment funds and regular savings. It is an extremely attractive and profitable model for making provision and the level of contributions and contract term are very flexible.
The rate risk is the unpredictable deviation from an expected value. Derivatives may be used to counter negative rate performances or strengthen positive ones.
The rating stipulates the creditworthiness of a company, country or issued security. The creditworthiness is determined by rating agencies. The highest level of creditworthiness is AAA. Inferior creditworthiness is connected with higher earnings but greater risk to investors. Raiffeisen Kapitalanlage-Gesellschaft fund managers only buy equities that have a creditworthiness rating of AAA or AA (except Raiffeisen HighYield).
Real Interest Rate
Interest return received on an investment after deducting the inflation rate and taxes.
The currency in which you think and organise most of your finances. Different regulations apply from the point of view of European investors to that of USD investors.
A security's return is not paid to investors but rather re-invested and included in the fund's price.
The price at which the equities in an investment fund can be re-sold. This results from the daily net asset value of the fund's assets divided by the number of equities issued. The repurchase price is rounded up to the next currency unit.
The return on an investment fund is made up of interest rates or dividends and realised price gains. The return is paid out annually from distributed earnings funds (see: Distributed Earnings); In a cumulative fund the returns are re-invested (see: Cumulative)
Insecurity about an investment's level of returns. For this the average past return is measured and compared with the fluctuations in the individual periods.
Risk of Shortfall
A statistical measurement stating the probability that earnings will be achieved below a defined target earnings in a certain period.
Measures designed to counteract return fluctuations by distributing them over different investment forms. Risk spreading occurs if the portfolio comprises numerous securities from different issuers and industries. For international portfolios securities from different countries and currencies support risk spreading. If the management is professional, negative fluctuations are exceeded by positive ones.