Asset Allocation Equity Fund Observation Dates (Structured Products)
Alternate Currency (Currency Linked Investment) Equity Linked Investments Principal
Balanced Fund Exchange Traded Funds Put
Base Currency (Currency Linked Investment) Final Valuation Date Rebalancing
Bond Fixed Income Fund Reference Entity (Structured Products)
Book Value Fundamental Analysis Regular Savings Plan
Call/Called Government Bond Risk Appetite
Callable Bonds Initial Price (Structured Products) Spot
Capital Gains Issuer Risk Strike Price
Cash Equities Knock-in Structured Notes
Coupon Knock-out Structured Products
Currency Linked Investment Least Performing Equity (LPE) (Structured Products) Technical Analysis
Currency Pair Leveraging Tenor
Derivative Market Price Unit Trust
Diversification Market Value Value Investing
Dividends Maturity (Structured Products) Yield
Duration Money Market Fund  
Equities Monitoring  

Asset Allocation

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon. The allocation is typically diversified across many types of asset classes to benefit from top performing asset classes and reduce impact of lower performing asset classes.

Alternate Currency (Currency Linked Investment)

The currency in which the investor gives the issuer of a Currency Linked Investment (CLI) the right to return the investor’s principal on maturity of the CLI. The investor in a CLI sells a call option to the issuer of the note, giving the issuer the right to “call” the base currency, converting it at an agreed rate into the alternate currency.

Balanced Fund

A hybrid fund combining equity and fixed income funds in a single mutual fund. By investing in equity and debt instruments, its twin objectives are both growth and income.

Base Currency (Currency Linked Investment)

The currency in which an investment is placed in a currency linked investment.


A certificate of debt issued by a borrower that usually pays a set rate of interest (also known as a ‘coupon’) for a specific period of time and repayment of principal in full at maturity.

Book Value

For an individual investor, book value is the amount you originally invested plus any interest or dividends you earned that have been reinvested.


When an investor is “called” a security or currency, it means he is contractually obligated to sell that security or currency to the holder of the “call option” at a specific, contracted price.

Callable Bonds

A bond which the issuer can decide to redeem before its stated maturity date. A call date and a call price are always given. You face a risk with a callable bond that it will be redeemed if its stated coupon is higher than prevailing rates at the time of its call date. If that happens, you won't be able to reinvest your capital in a comparable bond at as high a yield.

Capital Gains

Profits on an investment.

Cash Equities

Equities refer to the stocks of a company. Buying its stocks makes you a shareholder of that company. There are two ways to earn from stocks. The value of a stock could increase or decrease depending on market conditions and the company’s performance. Cash equities mean investors can only buy the equities or shares with cash – they cannot use investment loans (share financing) and any of their existing investments as collateral.


The stated interest rate on a bond when it's issued. For example, a $1,000 bond with a coupon of 6% will pay you $60 a year.

Currency Linked Investment

A Currency Linked Investment is a dual currency investment that involves a currency option, giving you the opportunity to earn an enhanced yield based on your view of the movements of the exchange rate in the future and the risk undertaken.

Currency Pair

Currencies valued relative to another currency. For example, if the Australian dollar is valued against the US dollar, the currency pair is AUD/USD.


A financial product that derives its value from the value of an underlying asset, such as a security (equity, bond), commodity, or currency. Examples of derivative products include options, futures, and warrants.


The spreading of investment funds among classes of securities and localities in order to distribute and control risk. Diversification allows the investor to benefit from top performing asset classes and reduce impact of lower performing asset classes.


Cash payment or additional stocks, per share, made by the company to its shareholders. It is usually the part of profits that was not reinvested in the company.


Duration of a fixed income instrument is a weighted average term to maturity. The time delay until the receipt of each cash flow is weighted by the contribution of that cash flow to the total present value of the bond.


Equities refer to the stocks of a company and is measured in number of shares. When you buy a company’s stock, you become a part owner, or shareholder, of that company. Very often, the terms ‘equities’, ‘stocks’, ‘shares’ and ‘securities’ are used interchangeably.

Equity Fund

Equity funds invest in company-issued equity securities. These funds may have a particular focus: between growth and value, geography, or sectoral, it could also be widely diversified.

Equity Linked Investments

You can earn an enhanced yield by taking a view that the underlying stock will not fall below a certain price. If the stock falls below this price at a predetermined future date, you will receive the underlying stock. ELIs are issued by financial institutions and investors are exposed to the issuer’s credit risk. ELIs are only recommended for investors with an appropriate risk appetite as they carry significant risks.

Exchange Traded Funds

An ETF is an investment fund that is listed and traded on the stock exchange. Usually, ETFs are made up of a collection of assets that are linked by a similar investment profile. It aims to produce a return that reflects the performance of the specific benchmark index or underlying assets. Many ETFs track an index, such as a stock, bond or commodity index. Their price fluctuates with demand and supply throughout the day. They may be adjusted from time to time to reflect the latest composition of assets that make up the index.

Final Valuation Date

A date on maturity of the structured note when the prices of reference entities are determined for the purposes of financial settlement.

Fixed Income Fund

Fixed Income Funds invest in instruments such as bonds, loans and asset-backed securities. You get diversification on your returns.

Fundamental Analysis

Fundamental analysis is a method of evaluating the health and performance of a company by examining related economic, financial and other qualitative and quantitative factors. The purpose is to determine the intrinsic value of the stock.

Government Bond

A government bond is a debt security issued by a government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date. Government bonds are usually denominated in the country's own currency.

Initial Price (Structured Products)

The market price at the commencement of a structured note.

Issuer Risk

The risk of the financial instrument issuer defaulting on its debts or financial obligations.


The level/price at which an option contract is activated. In a structured note where the investor has sold a “put” option to the issuer, the issuer can exercise that put option when the “knock-in” price has been hit.


The level/price at which an option contract ceases to exist. An option is “knocked out” when it hits that level/price.

Least Performing Equity (LPE) (Structured Products)

The worst performing stock in a structured note with a basket of underlying or reference stocks.


Leverage is the investment strategy of using borrowed capital to increase the potential return of an investment.

Market Price

The last reported price at which a security was sold on a stock exchange. It can also be the highest price which a buyer would pay, and the lowest a seller would sell, assuming that neither of these traders are compelled to buy or sell.

Market Value

What you would get for an asset were you to offer it for sale. The value might be quite different from what it cost you, what you have recorded as its book value, its insured value or its replacement cost.

Maturity (Structured Products)

The date on which a structured note terminates, and contractual obligations are fulfilled by both investor and the issuer.

Money Market Fund

Money market funds invest in short term debt instruments such as repos, treasury bills and commercial paper.Such securities may be issued by governments, municipalities and corporations. These funds generally invest in relatively lower-risk securities and pay dividends reflective of short term interest rates.


Regular reviews of the performance of your holdings and portfolio

Observation Dates (Structured Products)

Agreed dates on which market prices are used to determine the performance of a structured note.


The original amount of any investment.


When an investor is “put” a security or currency, it means he is contractually obligated to buy that security or currency from the holder of the “put option” at a specific, contracted price.


Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original desired level of asset allocation.

Reference Entity (Structured Products)

Any security or market indicator on which a structured note is based. The prices of those securities or market indicators are used to determine the note’s performance.

Regular Savings Plan

A Regular Savings Plan invests a fixed amount of funds every month into buying shares or unit trusts.

Risk Appetite

Risk appetite is defined as the amount and type of risk that an investor and/or organisation is willing to take in order to meet its strategic objectives.


Market price at any particular time.

Strike Price

The price at which a call or put option is exercised.

Structured Notes

A type of structured product, structured notes are linked to an underlying asset (such as equity, bond, or index) and are tailored to an investor’s view of the market.

Structured Products

A financial instrument whose performance or value is linked to that of an underlying asset, product, or index.

Technical Analysis

Technical analysis is a method used to understand to evaluate securities and attempt to forecast their future movement by analyzing statistics gathered from trading activity, such as price movement and volume.


The term of an investment.

Unit Trust

A Unit Trust is professionally managed investment fund. Your money is pooled with those of other investors. This pool of money is then used to invest in a range of assets. Successful investments in the assets add value to the fund and their returns are then distributed back to investors.

Value Investing

Value investing is an investment strategy where stocks are selected because they are viewed to trade for less than their intrinsic values. Investors who use this strategy believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with a company's long-term fundamentals, giving an opportunity to profit when the price is deflated.


The earnings/income generated by any investment or asset, expressed as a percentage of the investment per year.