Secure investments

Protected and guaranteed funds offer investors a certain amount of security when the market starts to get bumpy

Protected and guaranteed funds are almost an asset class in themselves ' offering equity-linked performance when markets rise and limiting the downturn should they fall. They are usually positioned somewhere between a pure equity product and a money market fund and are ideal if investors want equity market exposure without equity risk. By utilising financial derivatives, these funds are able to set 'safety nets' below which the investment value cannot fall. Guaranteed funds are primarily close-ended products with a fixed term to maturity (usually 3-5 years) and promise to return the in...