Linked GICs: A Strategy for Higher Potential Returns

GICdirect.com also provides Linked GICs, with a guarantee of your principal plus a potential for higher returns. All three products are not redeemable prior to maturity and all have a term of up to 5 years.

Index-Linked GIC’s

  • Potential for higher returns based on the performance of a specific stock market index such as the TSX or the S&P.
  • Some cap the return of the index while others allow you to participate up to a certain percentage of the index’s total return.

Mutual Fund Linked GIC’s

  • Potential for higher returns based on the performance of specific Mutual Funds.
  • Some mutual fund linked GIC’s also offer a minimum return of at least 1% per year paid at maturity.

Active Management GIC’s

  • Potential for higher returns based on an “active management” approach, designed to benefit from all capital market fluctuations, whether up or down.
  • An Active Management GIC includes investment strategies and instruments that are not always easily accessible to investors such as: currencies, options, short sales, publicly traded shares, bonds, etc.

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