Guaranteed investment funds provide investors with assurances that, at an agreed upon future date, all or a portion of their initial capital will remain intact or partially invested – as well as offering guaranteed rentability.
These funds charge high commission rates on subscriptions and redemptions during their guarantees, leaving only investors to recover their money without incurring penalties or higher commission rates at the end of each period.
They are a good option for investors
Funds of Invesment Guaranteed are an attractive choice for investors seeking capital protection in times of volatility and financial incertidumbre. While investing in guaranteed funds involves some risks, their insurer is ultimately accountable for your savings – so it is crucial that all documents pertinent to investing are thoroughly verified – use BrokerCheck Credential Verifier to check qualifications, registration history and disciplinary measures of brokers; in addition to this it’s also wise to verify whether they hold license to sell securities within their state (Contact Your Regulator).
Many investment funds guaranteeing return of liquid value provide investors with a guarantee to recoup initial investments if there are any complications with fulfilling them. Furthermore, many offer minimum guaranteed yield – an amount determined beforehand by the issuer and having an agreed-upon time horizon – so investors are protected in case their initial investments don’t fulfill them.
Bankinter Europe 2025 Guaranteed Fund, one of the more widely known guaranteed investment funds, falls into variable rental income and provides investors with full protection on the liquid value of their shares at subscription time.
They are a good option for small investors
Investment in guaranteed funds of investment is one of the best ways to enter the world of investments, yet investors must remember that past performance does not guarantee future rental income. Furthermore, upon expiry of a guarantee an important decision should be made: either reinvested into another guaranteed fund or other options tailored more appropriately to their situation and goals financially.
Funds of Investment Guaranteed with Variable Return: these types of investment funds provide investors with guaranteed return (whether total or partial) of initial capital investment as well as variable income related to stock, commodity and financial market developments (such as stocks, commodities markets, bonds, values, dollars indices or currencies) performance. Thus their risk profile is relatively lower and it makes for a suitable option for conservative investors.
Subscription and redemption costs of investment funds with guarantees tend to be high, both when first subscribed to and later during their guarantee periods. An investor could withdraw funds prior to maturity in order to avoid receiving their guaranteed amount, but if this occurs they would no longer receive it; note: early redemption cannot be recovered – funds have an expiry period which must be kept to in order for anyone claiming their guarantee benefits; only investments that meet that timeline qualify.
They are a good option for moderate investors
Guaranteed investment funds (GIFs) offer investors who accept some risk and want short-term rentability an excellent solution. They guarantee that at least your initial capital invested will be returned if the company doesn’t reach its liquidative guarantee value.
Light investment products with lower risks than other forms of invesment may be beneficial to medium-scale investors seeking protection for their investments. They typically charge high subscription and repayment fees during their guarantee periods; if capital is returned early before its due date, then fees and losses must also be compensated for.
Problematic with this type of fund is that when its maturity date comes around, your investment game ends and so your hopes of repayment may be considerably diminished from when your shares were sold off. After all, they’re only guaranteed for an amount in a certain time frame at maturity – especially as funds tend to return quickly after three or five years depending on market performance and the value of individual stocks that make up these funds.
They are a good option for large investors
Garantised investment funds (GIFs) provide investors with a guarantee for either full or partial capital return at an agreed-upon date, making them ideal investments for maintaining until that time to take full advantage of the insurance. It’s vital that investors remain invested to reap its full benefits. Before investing it’s crucial that costs and commissions of each fund are thoroughly evaluated prior to investing and the expiry period be anticipated as this can prevent incurring unnecessary losses by withdrawing early.
Guaranteed investment funds offer variable returns that depend in part on how various financial assets and indices perform; hence there is no assurance of capital recovery.
Guaranteed investment savings funds offer investors lower returns compared with other forms of risky investing, offering an important shield during times of economic volatility and instability, when their investors want to protect their wealth.