Investors who have experienced the market volatility of recent years are increasingly concerned about protecting their nest eggs as their primary objective changes from capital appreciation to capital preservation with growth potential.
Equity investments have historically offered higher returns, but they can pose a greater risk to your capital. On the other hand, traditional interest rate GICs may offer principal protection, but returns are often so low they barely keep up with inflation. To meet your goals, you want to increase the return of your investments without the risk of capital losses. To help you, CI Investments offers products like Deposit Notes to provide the protection that you want along with appealing growth potential.
Mutual Fund Deposit Notes are usually a capital-protected investment with returns linked to a specific investment strategy or index. The note issuer usually has high credit quality such as a bank or crown corporation and have a secondary trading market established by the issuer.