Tumbi Safe Invest

An investing strategy that seeks returns in excess of a specified benchmark. Here, buying and selling of funds or stocks is based on analysis and independent decisions. The other way of managing investments is passive investment, in which both buying and selling are linked to the performance of an index.

The return an asset achieves over a period of time. This measure considers the appreciation or depreciation (expressed as a percentage) that an asset - usually a stock or a mutual fund - faces over a period of time. Absolute return differs from relative return in that it is concerned only with the return of the asset, and does not compare it with any other measure.

A bond in which no periodic coupon is paid over the life of the contract. Both the principal and interest are paid at maturity. Also called zero-coupon bonds, these bonds are sold at a discount on their par value. On maturity, the holder is paid the par value of the bond.

Interest earned but not paid since the last due date. This usually applies to fixed income securities like bonds that are purchased in the secondary market. These securities usually pay dividends after six months or a year. When buyers buy bonds from the secondary market, they pay the seller the market price of the bond, in addition to the interest that would have accrued since the last time interest was paid on the bond. Buyers collect this interest a few months later, when the interest is distributed.