Financial jargon explained

Here you’ll find a simple explanation of some of the most commonly used investment terms. If there is any other financial jargon you want translated, please call our Customer Service Team free on 0800 597 2525 or email us at and they will be pleased to help.



Value Stocks

Shares which are attractively priced because the company is perceived to be undervalued. Value stocks which are then ‘discovered’ by other investors can rise sharply in value.


Standard deviation is a statistical measurement which, when applied to an investment Fund, expresses its volatility, or risk. It shows how widely a range of returns varied from the Fund's average return over a particular period.

While volatility is specific to a Fund's particular mix of investments, and comparison to other portfolios is difficult, clearly, for those that offer similar returns, the lower-volatility Funds are preferable. There is no point in taking on higher risk than necessary in order to achieve the same reward.