Glossary - I

identity fraud/theft

Using someone else's personal details in order to steal money or gain other benefits by pretending to be that person.

imputation credit

Tax credit passed on to shareholders who receive partially or fully franked dividends. The tax credit is in consideration of the tax the company has paid on its profits before passing those profits on to shareholders.

included value

Everything you get for your regular monthly payment under a mobile phone plan - e.g. allowances for calls, data.

income producing asset

Any asset that generates an income. For example, dividends are paid on shares, investment properties generate rental income, bonds and bank accounts produce interest.

income protection insurance

Provides you with an income if you can’t work because of illness or injury. Most policies offer cover for up to 75% of gross wages for a specified number of years.


A statistical measure of change in the value of a market, asset class or industry sector. The value of an index increases or decreases with changes in the value of the underlying security or sector it's measuring. For example, the ASX All Ordinaries Index measures the change in the overall value of 500 largest companies by market capitalisation listed on the Australian Securities Exchange.

index fund

A managed fund with a portfolio constructed to match or track the return before fees of a particular market index, such as the ASX 200 or the ASX Small Ordinaries Index.

industry fund

A superannuation fund that originally catered to workers from a particular employment industry or industrial award. Most are now open to the general public. They are usually low cost, have limited investment options and return profits to members.

industry sector

A classification used to group companies that are related in terms of their primary business activities. Major industry sectors include consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, metals and mining, telecommunications and utilities.


The increase in the cost of goods and services over time.

initial public offering (IPO)

When a company lists on a stock exchange and offers shares to the public for purchase. Also known as a float.

insider trading

The trading of financial products while in possession of information, or having received information, that is not generally available to the public. Penalties include heavy fines and imprisonment.

instalment warrant

A financial product issued by banks and other financial institutions that lets investors buy shares (or other securities) over a period of time, making an initial payment and paying the balance later. A form of leverage as it involves borrowing to invest, and investors are charged interest and fees on the outstanding amount but get the benefits of owning the whole investment, such as receiving dividends. 

insurance bond

An insurance bond is a long term investment offered by insurance companies and friendly societies where investors' money is pooled and invested according to the investment option chosen. There are tax advantages for higher income earners if the investment is held for at least 10 years and certain conditions are met.

insurance policy

A written legal agreement that sets out what is being insured and for how much.

insurance premium

Money charged by an insurance company for coverage.


Payment for the use of money over time. You earn interest by lending your money. If you borrow money, interest is the amount you pay to borrow the money. The rate of interest can be fixed or variable. It is usually calculated as a percentage of the amount lent or borrowed. For example on a $10,000 car loan that has an interest rate of 10%, you would pay $1000 interest in the first year.

interest rate

The relationship between the amount of money borrowed or lent and the money paid in return for the use of that money. Usually expressed as a percentage per year.

interest-free deal

Allows you to buy goods or services now and pay for them later. You don't have to pay interest for a set period. You are usually required to make regular repayments during the interest-free period. Any money outstanding at the end of the interest-free period will incur interest, often at a very high rate.

interest-free period on credit cards

The days where you don’t have to pay interest on your credit card purchases. Interest-free periods usually start on the first day of your billing cycle, not when you make a purchase.

interest-only home loan

Where only the interest is paid on a loan for a specified period. No principal repayments are required during that time.

international data pack

A special deal that gives you better value when you use your mobile phone overseas.

international transaction fee

A fee that may be charged by credit card providers for purchases, cash advances or transactions that are made with overseas-based merchants or financial institutions, or with Australian-based merchants who process payments overseas.  This fee may still be charged even if the transaction is in Australian dollars.


Dying without leaving a will. Your assets will be distributed according to intestacy laws in the relevant state or territory.


An asset bought with the aim of producing an income and/or an increase in value over time.

investment bond

A long term investment offered by insurance companies and friendly societies where investors' money is pooled and invested according to the investment option chosen. There are tax advantages for higher income earners if the investment is held for at least 10 years and certain conditions are met.

investment choice

Making a conscious decision about how your money will be invested.

investment manager

Individual or organisation responsible for investing and managing the assets of others. See also fund manager or responsible entity.

investment option

The choice investors have about how their money is invested in any form of pooled investment fund where a fund manager makes investment decisions on the investor's behalf. Investment options include single-sector options such as cash, bonds, property and shares, or multi-sector options such as conservative, balanced, growth or high growth. Each investment option offered has its own investment strategy, return benchmark and risks.

investment platform

An administrative system for your investments. Platforms offer a range of investments and services, all in the one place. Reporting for all investments is usually in the one report.


A legal entity that creates, registers and sells securities in order to raise money to finance its operations. Issuers include domestic or foreign governments, companies and investment trusts.


Last updated: 29 Jul 2015