Capital Guarantee Fund
Categories: Investing, Managed Funds, Stocks, Index Funds
Investments don't come with a guarantee. And many are typically followed by the old CYA response: "past performance is not indicative of future performance." Yeah, yeah, yeah, we know...But what if there WAS a fund that could guarantee that you wouldn't lose the whole kit and kaboodle? We'd be down with that, wouldn't you? And there is...The Capital Guarantee Fund.
This type of investment vehicle protects your principal and guarantees that your initial investment will never lose its value. Here's an example: Let's say you invest $10,000 in ABC You'll Never Lose Your Grass Fund, and it grows by 8% in its first year making your initial investment worth $10,800. Not too shabby. But in year two, it plummets by 50%. (Yikes!) Hey, but lucky for you, that principle investment of $10,000 is guaranteed. Phew!