5 min read I Date: 13 Aug 2021
Definitions
Below are the most common investing terms and definitions:
Asset Allocation - involves dividing your investment portfolio among different asset categories—like stocks, bonds, and cash.
Class - any classes of units representing similar interest in the assets of the Fund and differentiated by
features such as type of eligible investors, transaction amount, transaction methods, currency
denomination, fees and charges and/or distribution policy.
Compounding effect - the ability of a sum of money, to grow or generate earnings over time, which are then reinvested or remain invested.
Dollar cost averaging - an investing strategy that involves investing a fixed amount at a predetermined intervals, regardless of the price.
Diversification - spreading your money in a portfolio across a variety of investments to limit over-exposure to risks associated with any single asset. The investment loss from one asset can be neutralized by gains from other assets in the portfolio.
NAV - Net Asset Value
NAV of the Fund - the value of all the Fund’s assets less the value of all the Fund’s liabilities (including Management Fee and Trustee Fee) at the Valuation Point.
NAV of the Class - the NAV of the Fund attributable to a Class at the Valuation Point.
NAV per unit - the NAV of the Class divided by the number of units in circulation for that Class, at the Valuation Point.
Regular Savings Plan (RSP) - regular monthly investments.
Return - money that earned or lost on an investment over a period of time.
Rate of return - the net gain or loss of an investment over a period of time and it's represented in percentage.
Shariah - Islamic law, originating from the Qur'an (the holy book of Islam), and its practices and explanations rendered by the Prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Shariah scholars to determine the true ruling of the divine law on matters whose revelations are not explicit).
Class - any classes of units representing similar interest in the assets of the Fund and differentiated by
features such as type of eligible investors, transaction amount, transaction methods, currency
denomination, fees and charges and/or distribution policy.
Compounding effect - the ability of a sum of money, to grow or generate earnings over time, which are then reinvested or remain invested.
Dollar cost averaging - an investing strategy that involves investing a fixed amount at a predetermined intervals, regardless of the price.
Diversification - spreading your money in a portfolio across a variety of investments to limit over-exposure to risks associated with any single asset. The investment loss from one asset can be neutralized by gains from other assets in the portfolio.
NAV - Net Asset Value
NAV of the Fund - the value of all the Fund’s assets less the value of all the Fund’s liabilities (including Management Fee and Trustee Fee) at the Valuation Point.
NAV of the Class - the NAV of the Fund attributable to a Class at the Valuation Point.
NAV per unit - the NAV of the Class divided by the number of units in circulation for that Class, at the Valuation Point.
Regular Savings Plan (RSP) - regular monthly investments.
Return - money that earned or lost on an investment over a period of time.
Rate of return - the net gain or loss of an investment over a period of time and it's represented in percentage.
Shariah - Islamic law, originating from the Qur'an (the holy book of Islam), and its practices and explanations rendered by the Prophet Muhammad (pbuh) and ijtihad of ulamak (personal effort by qualified Shariah scholars to determine the true ruling of the divine law on matters whose revelations are not explicit).
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