Glossary
Financial & Investment Terms
Understanding financial language is key to making informed decisions. Our glossary provides clear, precise definitions of investment terms to help you navigate your wealth strategy with confidence.
Asset Allocation
The implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the individual's risk tolerance, goals and investment time frame.
Fiduciary Duty
The legal and ethical obligation to act in a client's best interest. Fiduciaries are required by law to manage a person's money or assets for the benefit of that person, rather than for their own personal gain.
Diversification
A risk management technique that mixes a wide variety of investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk.
Capital Gains
The profit realized from the sale of an asset that has increased in value over the purchase price. Capital gains are generally taxable and are categorized as either short-term or long-term depending on the holding period.
Annual Yield
The quantity of returns on an investment expressed as a percentage of the investment's cost or its current market value. It serves as a key indicator of the income-generating potential of an asset.