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G

Gilts

*Bonds* issued by the UK Government.  Also known as *gilt-edged securities*. Along with bonds can be referred to as *fixed interest securities*.

Gearing

The amount a fund can “gear” is the amount it can borrow in order to invest. In *unit trusts* and *OEICs* borrowing is limited to 10% of the fund’s value and is usually for the purpose of managing cash flow, rather than to increase the fund's investment exposure.

Gross income

*Dividends* and *interest* paid out to you before *income tax* has been deducted.

Gross redemption yield

Usually used in bond investments. This yield seeks to indicate the total *return* you might receive from both *income* and *capital growth* (or loss) if you hold your investment over a ten-year period.

Guaranteed funds

Funds in which the *manager* promises to provide a specific minimum *return*, backed by a legally enforceable arrangement with a third party to guarantee that promise.