Glossary - G

gearing

Borrowing to invest, such as when you buy a house using a mortgage or buy shares using a margin loan.

government bond

A medium to long term fixed interest investment issued by domestic or foreign governments which pays fixed interest rate (coupon rate) for the term of the investment. The original invested amount (face value) is repaid at the end of the term (maturity). 

government co-contribution

A contribution made by the Australian Government to a person’s superannuation account based on that person's income, source of income and personal super contribution. It is designed to help lower income earners build up their super before retirement.

growth asset

Assets such as shares and property that not only produce an income but have the potential to grow in value over time.

growth fund

A fund that invests in growth assets. A growth fund is more likely to produce higher returns over the long term but is usually more volatile in the short term.

guarantor

A person who guarantees a loan for someone else. The guarantor is legally responsible for paying the other person's debts if the debtor can't pay them.

 


Last updated: 29 Jul 2015