Categories: Stocks

Guaranteed Investment Certificate (GIC)

Guaranteed Investment Certificate (GIC) is an investment option that offers guaranteed rate of return or minimal risk of losing the principal amount.
This investment format is offered by the government. Under this, an investor lends a certain sum to the government to gain fixed returns from it. Fisk averse investors can opt for this invest in return for a guaranteed rate of interest.

Features of GIC

GICs are largely issued by the Canadian government and considered very safe. It is a good debt investment option with fixed returns and helps many investors to create a diversified portfolio. Though there is a lock in period, and there might be a penalty if withdrawn before the maturity period. The return is proportionally very less in GICs and they can be for a duration of 30 days or extend to even 12 years.

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