Asset

Active Investing

A strategy of picking individual investments to try to beat the market, rather than tracking an index.

Alpha

The return an investment earns above its benchmark — a measure of a manager's skill.

Alternative Investment

Assets outside stocks, bonds, and cash — like real estate, art, or private equity.

Annuity

A contract, usually with an insurer, that pays you a regular income stream in exchange for an upfront sum.

Appreciation

An increase in an asset's value over time.

Asset Allocation

How you divide your portfolio among stocks, bonds, cash, and other asset classes based on your goals and risk tolerance.