Terms starting with: M
Macroeconomics
The study of an economy in its largest sense. That is, macroeconomics studies gross domestic product, unemployment, inflation, and similar matters. It does not look at the function of individual companies and only tangentially studies individual industries. It is useful in helping determine the aggregate effect of certain policies on an economy as a whole
Managed fund
An investment that pools money from several investors and uses it to buy a particular type of investment, such as shares. Margin Loan - a loan that uses existing assets (namely: shares) as collateral, and is usually used to buy more shares. Margin Call - When the value of the collateral in a margin loan falls below the minimum level. In this situation, the borrower needs to either supply more money or sell off some shares to bring the levels back to the minimum amount.
Marginal Tax Rates (MTR)
Australia ’s sliding tax rates, ranging from 0% to 47% of your salary depending on the salary amount.
Master fund
An investment vehicle that enables individual investors or small superannuation funds to channel money into one or more underlying investments, most commonly wholesale or retail pooled funds operated by professional investment managers. They can take the form of: (a) discretionary funds where the individual investors selects the underlying investment products; (b) fund of funds where the investor selects a general risk profile e.g. growth, capital stable etc (c) feeder funds which operate similarly to fund of funds arrangements but with the master fund manager also being responsible for managing the underlying investments.
Managed Investments Scheme
Funds are pooled together to invest in a particular asset that is managed by a third party. When an investor invests in a Managed Investment Scheme they are allocated a number of units. The term “Managed Investment Scheme” is commonly referred to when discussing agricultural investments.
Management Expense Ratio (MER)
A ratio expressing the management, trustee and certain other expenses of a pooled investment fund as a proportion of the net asset value of the fund.
Mortgage
A legal agreement under which you take out a loan and use the property being purchased as security for that loan.