Glossary - M

managed discretionary account (MDA)

An account that is set up as part of your investment portfolio that you have given your investment manager control over so they can buy and sell securities on your behalf.

managed fund

An investment fund where your money and that of other investors is pooled and used to buy assets such as cash, shares, bonds and listed property trusts. The fund is managed by a fund manager.

margin call

Occurs when the value of an asset falls below the agreed loan to valuation ratio. The lender will ask the borrower to deposit enough money to bring the loan back to the agreed lending ratio.

margin loan

A loan that is taken out to invest in shares or managed funds. The investment is used as security for the loan. Margin calls are possible if the value of the investment falls below a set amount.

marginal tax rate

The highest rate of tax a taxpayer will pay on their income. Find out your marginal tax rate.

market index

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.

market sector

A group of companies that produce or buy and sell such similar goods that they are in competition with each other. Examples include the mining, retail and technology sectors.

market-linked investment

A pooled investment scheme where the value of the investment depends on the movements of a particular market.

master trust

Allows individual investors to pool their funds so that they can invest in a wide choice of investments, usually at wholesale prices. Typically used by financial planners for reporting convenience. Also known as an investment platform or wrap account.


The date on which a debt or investment and all outstanding interest payments must be paid in full.

mezzanine finance

A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies or build development projects. It is usually debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. This type of investment tends to be high risk and suitable only for sophisticated investors.

minimum payment

The lowest amount that must be paid each month on a debt such as a loan or credit card.

mining tenement

A license, permit or lease providing rights to explore for and/or extract minerals under the surface of an area of land.

mobile broadband

Internet access from mobile phone providers.

mobile phone plan

A description of the services a mobile phone company will give you, what they will charge you and how you will pay.

money transfer request

When one individual or entity asks another to send them money. See also advance fee fraud.


A form of security (usually over real estate) that is used to secure repayment of a debt (usually a home loan).

mortgage broker

A person who matches borrowers to lenders and arranges mortgage contracts between the two parties.

mortgage fees

Fees paid by mortgagors for setting up, administering and ending a mortgage.

mortgage fund

A type of investment fund where investors' money is on lent (as mortgage loans) to a range of borrowers who use the money to buy or develop properties. It might also be used for other investments (for example, investing in other mortgage funds). In return the fund manager promises to pay investors a regular income. 

mortgage scheme

A scheme that invests in mortgage loans or in companies that lend money for mortgages.

mortgage-backed security

An investment in a collection of loans for which the lender holds a mortgage over the property the loan was used to purchase. The loans are written by a financial institution, then sold to an intermediary, who packages (or securitises) the loans into different groups, based on their level of risk. The packaged group of loans is then offered to investors.


Someone who lends money in a mortgage arrangement.

mortgagee sale

When a mortgagee sells a property to recoup their costs because a mortgagor defaults on their repayments.


Someone who borrows money in a mortgage arrangement.


Last updated: 29 Jul 2015