Asset Management – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What is Asset Management? Asset management refers to the process of managing a company’s or individual’s investments to achieve specific financial goals. This includes the management of various types of assets such as stocks, bonds, real estate, and other financial instruments. Asset management involves making strategic decisions on how to allocate resources to maximize returns … Read more

Active Management – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What is Active Management? Active management refers to a style of investment management where a portfolio manager or team of managers actively make decisions about which securities to buy, hold, and sell within a portfolio. The goal of active management is to outperform a specific benchmark or index by using various strategies, research, and analysis … Read more

Will – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What is a will? A will, also known as a last will and testament, is a legal document that outlines a person’s wishes regarding the distribution of their assets and the care of their minor children after their death. It allows individuals to specify who will inherit their property, who will be responsible for carrying … Read more

Forwards – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What are Forwards in investment and wealth management? Forwards are a type of financial derivative contract that allows investors to buy or sell an asset at a specified price on a future date. They are commonly used in investment and wealth management to hedge against price fluctuations or to speculate on the future direction of … Read more

Junk Bonds – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What are Junk Bonds? Junk bonds, also known as high-yield bonds, are fixed-income securities issued by companies or entities that are considered to have a higher risk of default compared to investment-grade bonds. These bonds typically offer higher yields to compensate investors for the increased risk of investing in them. Junk bonds are often issued … Read more

Mutual Fund – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What is a Mutual Fund? A mutual fund is a type of investment vehicle consisting of a pool of funds collected from multiple investors to invest in securities such as stocks, bonds, money market instruments, and other assets. These funds are managed by professional money managers who allocate the fund’s assets and attempt to produce … Read more

Investment Policy Statement (IPS) – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What is an Investment Policy Statement (IPS)? An Investment Policy Statement (IPS) is a document that outlines an individual or organization’s investment goals, objectives, risk tolerance, and guidelines for managing their investment portfolio. It serves as a roadmap for making investment decisions and provides a framework for evaluating the performance of the portfolio over time. … Read more

Small-Cap – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What is a Small-Cap Stock? A small-cap stock refers to a company with a market capitalization typically between $300 million and $2 billion. Market capitalization is calculated by multiplying the company’s outstanding shares by the current market price of each share. Small-cap stocks are considered to be riskier investments compared to large-cap stocks due to … Read more

Income Tax – Definition & Detailed Explanation – Investment and Wealth Management Glossary

What is Income Tax? Income tax is a tax imposed by the government on individuals and businesses based on their income or profits. It is a key source of revenue for the government to fund public services and infrastructure. Income tax is typically calculated as a percentage of a person’s taxable income, which includes wages, … Read more

Swaps – Definition & Detailed Explanation – Investment and Wealth Management Glossary

I. What are Swaps? Swaps are financial agreements between two parties to exchange cash flows or other financial instruments over a specified period. These agreements are typically used to manage risk, hedge against fluctuations in interest rates or currency values, or to speculate on market movements. Swaps are commonly used in the financial markets by … Read more