Capital-Protected Fund
Definition
What is Capital-Protected Fund?
A fund structured to protect some or all invested principalThe original amount of money invested or lent, excluding later returns. at a specified date, subject to its terms and issuer riskThe risk that the entity issuing a security cannot meet its obligations..
Example in practice
How This Looks in Practice
A five-year product promises 90% principal protection at maturityThe date when a debt investment's principal is scheduled to be repaid..
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Related Terms
Money Market Fund
A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.
Fund TypesEquity Fund
A fund that invests primarily in shares and seeks long-term capital growth.
Fund TypesFixed Income Fund
A fund focused on income-producing debt securities such as government and corporate bonds.
Investment MethodsLump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.