Blog

Return

The amount of money your investment earns.

Responsible Entity

A licensed entity or body that operates a managed investment scheme.

Registered Investor(s)

An individual or entity whose Fund Application Form has been accepted by the Fund.

Refinance

When you replace or extend an existing loan with funds from either the same or a different bank or financial institution.

Principal

The original sum of money invested, or the amount borrowed or still owing on a loan.

Prepaid Interest

A portion of the loan principal retained and used to meet the Borrower’s interest obligations.

PDS

See Product Disclosure Statement.

Peer to Peer Lending

Peer to peer lending matches people who have money to invest with people who are looking for a loan. A more appropriate term for this practice is marketplace lending because an online platform, usually a website, is used to match investors with borrowers. The Australian Securities and Investment Commission (ASIC) mandates that P2P lending platforms must be set up as managed investment schemes. This means that online lenders must have an Australian Financial Services Licence (AFSL). In addition, platforms must comply with the Corporations Act when they provide their services.

IM

See Information Memorandum

Option

A contract between two parties that gives the buyer/seller the right, but not the obligation, to buy/sell an asset, at a set price, on or before a specific future date.