Chapter 15
Glossary
The app’s financial terms, explained simply.
2 min read, 2 sections
On this page
Fructificare includes 33 definitions, written to be understood without prior knowledge: available from Edit > Glossary.
15.1Discovery mode
At the top of the page, a switch controls Discovery mode. When on, the default setting, financial terms are clickable throughout the application: a click opens a bubble that explains the word.
Turn it off for a cleaner interface. The Glossary page itself stays accessible in any case.
15.2The definitions
Accounts
| Term | Definition |
|---|---|
| Account | A real investment account: your PEA, life-insurance policy or savings passbook. |
| PEA | A French tax-advantaged account for investing in European shares. |
| Securities account | An ordinary securities account: no cap, no restrictions, but no tax advantage either. |
| Life insurance | A flexible savings contract whose tax advantage kicks in after 8 years. |
| Euro fund | The guaranteed compartment of a life-insurance policy: your capital cannot fall. |
| Regulated savings account | Livret A, LDDS, LEP: a state-set rate and fully tax-exempt interest. |
Operations
| Term | Definition |
|---|---|
| Transaction | A deposit or withdrawal on an account, at a given date. |
| Calibration | Manually entering the real value of an account, read from your bank statement. |
| Cash | Money sitting in the account but not yet invested. |
| Deposits | The money you have paid into the account (total of your deposits). |
| Weighted average price | The average price at which you bought a holding, weighted by quantity. |
Performance
| Term | Definition |
|---|---|
| Capital gain | The difference between what your investment is worth and what you put in. |
| PnL | Profit and Loss: the gain or loss on a holding, in euros. |
| Total cost (cost basis) | The capital you actually invested in this holding: your deposits minus withdrawals, before any gain. |
| Current value | What your holding or account is worth today, based on the latest calibration. |
| Target return | The annual return rate you assume to project the account's growth. |
| Annual return | What your money earned over a year, as a percentage. |
| Modified Dietz | The return calculation method used by Fructificare. |
| TER | Total Expense Ratio: the total annual cost of an investment, as a percentage. |
Fees
| Term | Definition |
|---|---|
| Management fees | What your insurer or broker charges each year on your holdings. |
| Entry fees | A commission charged each time you invest. |
Taxation
| Term | Definition |
|---|---|
| Taxation | The rules that determine what the state takes from your gains. |
| Flat tax | The single flat rate of 31.4% on financial gains. |
| Social contributions | 18.6% taken from your gains, whatever the account. |
| Tax allowance | A portion of your gains that escapes tax. |
| Partial withdrawal | Taking part of your life-insurance policy without closing it. |
Strategy and the long term
| Term | Definition |
|---|---|
| Compound interest | Your gains themselves produce gains, year after year. |
| 8-4-3 rule | A way of visualising how compound interest accelerates. |
| FIRE | Financial Independence, Retire Early: living off your portfolio income. |
| Crossover Point | The point where your investments earn you more than you contribute. |
| Diversification | Spreading your money across several investments to limit risk. |
| Inflation | The general rise in prices, which erodes the value of your money. |
| Stress test | Simulating a crash to see what would become of your portfolio. |