Income tax levied on the realised capital gains when assets are sold or otherwise disposed of.

The tax applies to most assets acquired on or after 20 September 1985. The tax on assets held for over twelve months and disposed of at a profit is based on the historical cost price with an allowance for inflation; this is measured by using the All Groups Consumer Price Index for the relevant quarters Capital losses realised on assets sold or otherwise disposed of, but without adjustment for inflation, are allowed as an offset to the realised capital gains of the same or a future financial year.

Disposal of the sole or principal residence (but not a second house, such as a holiday house, or an investment property) does not give rise to any capital ' gains tax.

A fixed interest unit trust designed specifically for short term investors. For this reason no front?end or rear?end fees are imposed, the manager's expenses and profits being covered by a periodical charge based on the total value of the fund. Units are normally issued at $1 and redeemed at $1, with interest accruing on a daily basis at a variable rate related to the fund's actual earning rate each day.

A particularly valuable feature introduced by some cash management trusts is the ability for unitholders to write cheques drawn on their own accounts, either in favour of themselves or in favour of third parties (although not usually for cash).

Interest calculated on both the original capital and on the accumulation of past interest amounts, in contradistinction from simple interest; compound interest is the only meaningful way to measure the return on an investment.

The period between interest calculations affects the total amount of interest paid, with shorter periods or rests resulting in effectively higher interest payments than longer periods (in respect of any particular nominal rate of interest).