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P

Personal Equity Plans (PEPs)

Tax efficient savings and investment plans which were replaced by *ISAs* in April 1999. As of April 2008 all PEPs were reclassified as ISAs. 

Portfolio

Refers to investment holdings. It can either refer to the holdings within a particular fund or the range of investments held by an individual investor.

Pound cost averaging

Investing on a regular basis can iron out stock market fluctuations and can help you to avoid investing all of your money when the market is at its peak. Saving regularly enables you to buy more *shares* when the market and prices are low and less when the market and prices are high. Over time the cost of your *units* will even out and it is likely that you will end up paying below average prices for your units. This is known as pound cost averaging.

Preference shares

These are similar to *bonds* in that they usually pay a fixed rate of *income*.  However, they pay it as a *dividend* rather than *interest* and are subject to the issuing company making sufficient profits.

Protected funds

Funds other than *money market* (cash) funds which aim to provide a *return* of a minimum amount of capital back to the investor, with the potential for some growth. Unlike *guaranteed funds*, they do not back their promise with a guarantee.

Provider

A financial company, in the case of *unit trusts* and *OEICs*, a fund management company, which provides financial products to members of the public.