Guaranteed Investment Fund
Guaranteed Investment Fund
Guaranteed investment income is a type of investment product by insurance companies that allow clients to invest in equity, bond, and/or index fund. While providing a promise of a predefined minimum value of the fund will be available at the fund’s maturity.
Guarantor
An entity that commits to providing the funds required to ensure the investor keeps their initial investment if the guaranteed investment fund does not perform in a way that generates net asset value. When this amount delivers directly to the fund, then there is an internal guarantee; if the shareholder receives the amount, then the guarantee is external.
Guaranteed variable return funds:
funds where the returns link to the performance of currencies, equities or other assets. These funds only guarantee the initial investment on the guaranteed maturity date.
Guaranteed funds are recommended when investors are sure they can hold their investment for the guarantee period.
The guaranteed maturity date must pay regard to, as the situation must assess and the appropriate action decide upon at that time. The fund may merge into another fund when the guarantee matures.
Guaranteed Variable Yield
These only ensure starting investments on the guarantee’s maturity date. They also offer the option to gain returns linked to how multiple financial assets or indicators perform. Investors must take into account that if underlying instruments do not develop as expected. Then it is possible not to gain any returns.
What this means to investors is that they can take control of risk (with principal guarantees of 100% at maturity or death). While building strong assets for the future.
The deposited monies into the segregated fund policy by the investor are segregated by the insurer from its general assets. The insurance company invests the monies in mutual funds as directed by the policyholder. In this way, the investor can benefit from increases in the value of the underlying mutual fund with the principal value protected by a guarantee.
