Investing in an asset that is seen as undervalued and selling when the asset is overvalued. This type of investing tends to run counter to market trends.
An investor who engages in Value Investing, i.e. buying underpriced stocks and selling at a profit when they appear overvalued.
Capital used in a new business or venture, typically to fund innovation or expansion using promising new technologies. Venture capital may be provided by ”angel” investors, or by institutional venture capital funds. Typically it involves a contract setting out revenue and profit goals and entitles the investor to substantially greater ownership if goals are not met. Conversely, the business owner may achieve greater profit share and more control if agreed goals are met or exceeded. Venture capitalists often bring knowledge, experience and contacts to fledgling or rapidly expanding businesses as well as making financial contributions.
If a member leaves his employment prior to being eligible for retirement benefits, part or all of the employer contributions may be applied to the member benefit. A ”vesting scale” sets out the rate at which employer contributions may vest in the member. Most funds now provide for full vesting for all members.
The degree to which the value of an investment fluctuates. Share prices or exchange rates that change often and by a substantial degree are said to be highly volatile. High volatility is generally regarded as increasing risk, though volatile investments can be highly profitable for investors who can accurately predict trends.
Personal contributions made to a superannuation account by a member in addition to employer contributions. An annual limit applies. See also ‘Employee contributions‘.