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ICVC: Investment Company with Variable Capital. Another term used to describe an OEIC which is used rarely but can be found in formal documents relating to OEICs.

Income: The return on an investment that arises from dividends and interest earned.

Income shares: Income shares are a class of shares in a split capital investment trust. There are several types of income shares, which vary in their entitlements to income and offer various capital entitlements on wind-up.

Income and residual capital shares (IRC): See Ordinary income shares.

Income tax: A tax payable to the Inland Revenue on any income you receive, whether it is wages or income from investments and savings. Different rates of income tax apply; the one you pay depends on how much money you have coming in. For the 2006-07 tax year you are able to earn up to ?5,035 before you have to pay any income tax. You may be entitled to a higher personal tax allowance if you are 65 or older.

Index number: An index number is a statistic indicating the relative change occurring in the price or value of a commodity, share price or in a general economic variable e.g. retail price increases, with reference to a previous base period conventionally given the number 100.

Index/indices: A grouping of shares or fixed interest securities on the stock market which are often similar in size or represent similar industries. For example, the FTSE 100 index represents the largest 100 UK companies by market capitalisation.

Index tracking funds: Index tracking funds aim to mirror the progress of a stock market index, e.g. the FTSE 100, by buying and selling shares in the same proportions as represented on the index. These are also sometimes called tracker funds or index funds.

Independent Financial Adviser (IFA): An authorised and qualified professional who can advise on all financial services and products available and tailor them to individual needs.

Individual Savings Account (ISA): ISAs are savings accounts free of personal taxes which can be used to hold many types of savings and investment products.

Inflation: A general rise in the level of prices on the high street. This is measured by the Retail Price Index.

Inflation-linked bond: A bond issued by government or companies, whose coupon and face value are adjusted to reflect price increases. Index-linked bonds are inflation-linked bonds issued in the UK.

Inflation risk: The risk to your savings caused by rising inflation. If inflation rises but interest on your savings doesn't keep up it can reduce the spending power of your money. A ?1 coin will always be worth ?1, but what you can buy with that coin will reduce with increased inflation.

Initial charge: A charge paid to the fund manager when you invest to cover their expenses, such as commission, advertising, administration and dealing costs.

Institutional investor: Institutions such as company pension schemes and life assurance companies who invest in larger quantities than private individuals.

Instrument of Incorporation: This document forms the legal constitution for an OEIC fund and dictates how the fund will operate. The unit trust equivalent is known as the Trust Deed.

Interest: An amount, in percentage form, which a bank or building society will credit to you if you save using a deposit/savings account. The amount paid will be a percentage of whatever capital is in the account. Gilts and bonds also pay income in the form of interest.

Interest distributions: Income paid out by unit trusts and OEICs that invest predominantly in gilts and bonds.

Interest rate future: A futures contract the underlying security of which is a debt obligation (an interest bearing obligation). Examples include a Gilt future (with UK government bonds are the underlying security), Bond futures (German government bonds as at the underlying security), Treasury-bond futures (US Treasury bonds as the underlying obligation).

Intermediary: When buying a financial product you may not want to buy directly from the fund management company. A third party may be able to offer you advice or a discount. These third parties are known as intermediaries and include banks, building societies and independent financial advisers.

Investment funds: A general term for unit trusts and OEICs.

Investment grade bonds: These bonds have a low risk of the company that issued the bonds being unable to repay them. The most secure are known as "triple A" bonds. See credit ratings.

Investment objectives: All investment trusts must issue a clear statement of their investment objectives in their prospectus when they initially float. The board and managers must aim to meet these objective, although they can be amended by the trust's shareholders at a later date.

Investment trust and investment company: A closed-ended fund, listed on the London Stock Exchange, which invests primarily in a diversified portfolio of the shares and securities of other companies.

The value of your investments and the income from them can go down as well as up. You may not get back the full amount you have invested.

Issued in the UK by Henderson Global Investors. Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646) and Gartmore Investment Limited (reg. no. 1508030), (each incorporated and registered in England and Wales with registered office 201 Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Conduct Authority to provide investment products and services. Henderson Diversified Income Limited is a Jersey fund, registered at Liberté, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and is regulated by the Jersey Financial Services Commission. Telephone calls may be recorded and monitored.