Investment funds dictionary

Glossary of financial terms for investment funds.

This digital financial dictionary contains everything you need to know about investment funds, arranged from A to Z.

Bankinter has developed the platform as a handy, interactive guide to understanding the most common concepts used in investment fund prospectuses and key information documents: contracts, clauses, terms and conditions, annexes, etc., both in physical and digital format.


Alpha (á)

Excess return on a fund relative to the return of the benchmark index. The better the manager, the higher the alpha obtained by the fund.

Asset Allocation

This is defined as the apportionment of the assets in a portfolio according to the chosen combination of assets, risk and geographical area. Both bottom-up and top-down analyses are performed to apportion assets.

Active Management

The objective of this management system is to produce better returns for the managed portfolio than the market average by using independent criteria based on the manager's information and experience in selecting investments. It is the opposite of passive management which simply mirrors a market index.