These include notes, bonds, and mortgage-backed securities with both fixed and variable payments. Index A group of securities designed to represent a market or market segment. For example, the Dow Jones Industrial Average is comprised of 30 stocks designed to represent the overall market, specifically large companies. Indexing is a passive strategy in which the investor tries to replicate an index. Inflation A rise in prices.
Inflation is the rate of change in prices.
Issuer Refers to the entity which issued a security. Usually used with respect to a bond to denote who is responsible for paying the interest and principal. The time at which the principal is due on a bond . These mutual funds invest in cash equivalents and provide low but safe income. Mortgage-Backed Securities whose value or payout depends on an underlying pool of mortgages.