GICs can provide safe investments plus competitive returns
(NC) For Canadian investors who prefer safer investments, Guaranteed Income Certificates (GICs) offer an effective option. GICs have long provided an ideal way to help investors grow and protect their investment funds, with flexible terms ranging up to 10 years. Investing in different types of GICs gives investors the opportunity to take advantage of a suite of different benefits GICs offer, while also providing diversification for their portfolio.
By choosing the right GICs, investors can:
• Protect 100 per cent of their capital
• Generate steady, predictable income
• Diversify their overall investment portfolio and reduce risk
• Pay themselves monthly, quarterly, semi-annually or annually
Many Canadians appear to be taking the benefits of GICs on board. According to a BMO survey, 32 per cent, including 20 per cent who don't own any GICs, say they are at least somewhat likely to purchase them within the next year. These investors cited peace of mind, ease of planning because of a guaranteed return and their usefulness for diversifying a portfolio as key reasons for owning GICs.
That said, nearly a third of Canadians who don't own GICs avoid them because of a perceived lower rate of return. But even for these kinds of investors, GIC options are available.
As an example, those who wish to get all the benefits of a safe investment and competitive returns could consider the 3-Year BMO RateRiser Plus GIC. This GIC provides the best of savings accounts and investments combined, with guaranteed competitive returns that increase annually along with the flexibility for investors to access their money each year.
For more information on how to incorporate guaranteed investments into your portfolio, visit a local BMO Bank of Montreal branch and speak with a BMO investment professional.
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