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Accredited investor

Investors who meet wealth or income thresholds prescribed by the Monetary Authority of Singapore (MAS) to qualify as accredited investors.

Active management

An actively managed fund uses either a single manager or a team of managers to attempt to outperform the market and produce better returns than those of passively managed index funds.

Annual return

An investment’s average gain or loss over a calendar year or 12-month period.

Asset allocation

The distribution of investment capital among various asset classes according to an investment strategy. Asset allocation allows an investor or fund to control investment risk and investment exposure in different financial markets or economic sectors to achieve certain investment objectives. An investor with low risk tolerance, for example, may choose asset allocation with a greater portion of bonds and short-term debt instruments.

Asset class

Basic categories of investments, which include equities, bonds, short-term debt instruments and cash. Each asset class has unique characteristics that influence its potential return and risk level.

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A benchmark is a standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-segment stock and bond indexes are used for this purpose.


A proposal to purchase securities at a specified price.

Bid-offer spread

The difference between the price at which an intermediary is willing to buy a fund’s units (bid) and the price at which the intermediary is willing to sell them (offer).


An asset class that represents a loan by an investor to a company or government. The borrower, known as the bond issuer, pays regular interest over an agreed period of time before returning the full loan amount. Bonds can be bought and sold during their lifetime, though their price can fluctuate depending on interest rate expectations. They are generally considered less volatile and offer less growth potential than equities.

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Cumulative performance

The total gain or loss generated by a fund over a specified period of time, such as the year to date(YTD), last 3 months, last calendar year or since launch.

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Diversification means investing in a mix of assets — stocks, bonds, cash, or others — that perform differently in various economic environments. The goal is to reduce the volatility of your portfolio over time.

Dollar-cost averaging

Investing a fixed dollar amount into a fund according to a regular schedule regardless of the price. This practice is adopted by retirement schemes, with investors usually making regular monthly contributions. Dollar-cost averaging attempts to lessen the investment risk associated with market timing by spreading out investments over an extended period of time.

Dollar-cost averaging return

The dollar-cost averaging return available for most of our retirement funds with at least 3-year track record illustrates the rate of return that may be achieved through making regular contributions over certain periods of time. The figures are calculated by Gadbury Group Limited with the assumption that monthly contributions remain constant over time and are made on the last day of each month.

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An asset class, also known as stocks or shares which represents ownership in a company. Equities are considered more risky than other asset classes, as they tend to react quickly to economic news and geopolitical events. But they have historically performed better than bonds and money market instruments.

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The costs of managing and operating a fund or retirement scheme charged to investors. These fees may include;

  • investment management
  • trustee and record-keeping
  • other fees subject to the terms and conditions in the offering documents

Financial advisor/Investment advisor

A professional or organisation that is in the business of giving advice about securities to clients.


A pool of money set aside for a purpose, usually to generate a return through investments. In the case for retirement fund, the assets are invested for retirement in a way defined in the fund's offering document. In a common retirement fund arrangement, sub-funds with different investment objectives may be chosen by the members.

Fund allocation by asset class

The breakdown of a portfolio’s investments based on asset classes, such as equities, bonds and cash.

Fund expense ratio

The total expenses charged by a fund expressed as a percentage of the fund's net asset value. Such costs may include transaction costs, auditor fees, fund management fees, trustee fees, custody fees, accounting charges, printing costs and other operational expenses.

Fund of funds

A fund that invests in other investment funds. The main advantage of such a fund is greater diversification.

Fund performance

The gain or loss generated by a fund as measured by the percentage change in the fund’s net asset value(NAV). Fund performance can be measured in a number of ways, including on an annual basis, annualised basis and cumulative basis.

Fund supermarket

A fund distribution platform that offers a range of mutual funds from different fund houses. Investors have the convenience of being able to mix and match their portfolio using different managers' funds with one supplier and receive all the performance statements in a single report. Some fund supermarkets bundle selected funds together as packages based on the investors risk profile, for example, "stable", "balanced" or "growth" portfolios comprising different fixed proportions of equity, bond and money market funds.

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Geographical/currency breakdown

The breakdown of a portfolio’s investments by country or currency, updated on a quarterly basis during the calendar year.

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Inception date

The date on which a fund was launched.

Industry breakdown

The breakdown of a portfolio’s investments by industry group, updated on a quarterly basis during the calendar year.

Inflation risk

The risk that an investment's return may not keep pace with the rate of inflation. Investing too conservatively may increase inflation risk, as the investment options may grow below the rate of inflation, resulting in a loss of purchasing power.

Investment risk

The risk that an investment's actual return will be lower than its expected return. Investment risk includes the possibility of an investment losing market value, and may be reduced through diversification.

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Latest fund expenses ratio

The total expenses charged by a fund expressed as a percentage of its net asset value(NAV).

Lipper Leader Rating System

A system of ratings created by Lipper to guide investors and advisors in selecting funds best suited to their investment style and goals.

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Market timing

Making investments based on predictions of future price movements in financial markets. As it is difficult or arguably impossible to predict future market movements consistently, market timing is an approach to investing that average investors are widely advised to avoid using.

Modified duration

A measure of the sensitivity of a bond or fixed-income portfolio's price to interest rate changes. It follows the concept that interest rates and bond prices move in opposite directions. For example, if interest rates rise 1%, the price of a bond with a duration of five years will generally fall by 5%.

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Net asset value (NAV)

The total value of the fund's portfolio minus liabilities.

Net asset value per unit

The value of one unit or share of a fund. This is calculated by dividing the net asset value of the fund by the total number of units or shares outstanding.

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The price at which investors buy units.

Offering document

A legal document stating the objectives, risks and operations of an investment product. It serves to provide investors and prospective investors with information regarding the investment product.

Open architecture

A platform that offers a range of investment funds from different fund houses.

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Performance since launch

The return since the initial launch of a fund.


A legal document containing the fund’s strategies, the fund manager’s background, the fee structure and relevant financial statements. 

Purchasing power

The value of money expressed in terms of goods and services. Purchasing power is the quantity of goods and services that can be bought for a given unit of currency. The term is often used when discussing the impact of inflation, as inflation reduces purchasing power.

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The possibility that an investment's actual return will be different than expected. This includes the possibility of losing some or all the principal investment. An investment’s risk is sometimes measured by its volatility.

Risk-adjusted return

A measure to determine how much an investment will yield given the level of risk associated with it.

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S&P / Moody's credit rating

A rating of the quality of a debt instrument by independent financial credit rating agencies Standard & Poor's (S&P) and/or Moody's. The quality of a debt instrument is based on an assessment of the creditworthiness (or ability to repay debt) of the organisation that issued the instrument. "AAA" represents the best quality rating. "A" is a lower rating than "AAA". "BBB" is the lowest rating that is still classified as "investment grade".

Sector allocation

The practice of holding securities in different industries in one's portfolio in order to spread risk.

Short-term debt instruments

Debt instruments, such as Certificates of Deposit and US Treasury Bills, with short-term maturities. The benefits of these instruments are that they generally offer very low risk and high liquidity (i.e., they can be bought and sold easily).

Standard deviation

A measure of how much the price of an investment, such as a fund or stock, fluctuates over a given period of time. Standard deviation shows the historical volatility of an investment. The higher the standard deviation, the more risky the instrument is deemed to be.

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Top 10 Holdings

A list of the largest underlying securities holdings of a fund, usually updated on a quarterly basis during the calendar year.

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Unit NAV

The same as net asset value per unit.

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Yield to maturity

The expected annual rate of return on a bond investment if it is held to maturity.