- Protected Fund
- A type of mutual fund that guarantees an investor at least the initial investment, plus any capital gains, if it is held for the contractual term. The idea behind this type of fund is that you will be exposed to market returns because the fund is able to invest in the stock market, but you will have the safety of the guaranteed principal.
The initial investment is protected by an insurance policy in case the fund is unable to pay the investor back his or her principal. The initial investment can only be paid back after the guarantee period is over; if the investor sells before this period, he/she is subject to the current value of the fund and any losses that may arise. This type of fund tends to have higher expense ratios than other types of mutual funds.
While protected funds state that you will be guaranteed at least your original investment in addition to being exposed to market returns, these funds are often heavily invested in fixed-income securities and have less weighting in the stock market.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
protected fund — guaranteed/protected fund Fund that protects or guarantees the investor s principal. The guarantee or protection feature can be partial or total; it may or may not include subscription fees; it may apply at one or more subscription dates; and it… … Financial and business terms
guaranteed/protected fund — Fund that protects or guarantees the investor s principal. The guarantee or protection feature can be partial or total; it may or may not include subscription fees; it may apply at one or more subscription dates; and it may be granted for one or… … Financial and business terms
capital-protected fund — /ˌkæpɪt(ə)l prə tektɪd fʌnd/ noun a fund which guarantees the investor’s capital and at the same time gives some growth … Dictionary of banking and finance
Protected areas in Estonia — are regulated by the Nature Conservation Act (Lang et|Looduskaitseseadus), which was passed by the Estonian parliament on April 21 2004 and entered into force May 10 2004.cite web |url=http://www.legaltext.ee/en/andmebaas/tekst.asp?loc=text… … Wikipedia
protected liabilities — In the context of pensions, a scheme s protected liabilities are the estimated cost of securing members benefits through buying annuities (annuity) from an insurance company in an amount equal to the compensation that the Pension Protection Fund… … Law dictionary
Protected areas and conservation in Belize — Since its declared independence in 1981, the country of Belize has passed many environmental protection acts which have had a profound influence on the conservation of biodiversity in the country. These acts have established many different types… … Wikipedia
guaranteed fund — A fund which promises to return at least the original sum invested to the investor after a set period (normally 5 7 years), and in addition, further profits if the fund has traded successfully. Dresdner Kleinwort Wasserstein financial glossary… … Financial and business terms
Bhutan Trust Fund for Environmental Conservation — The Bhutan Trust Fund for Environmental Conservation was the world s first environmental trust fund. It was established as a collaborative venture between the Royal Government of Bhutan, United Nations Development Program, and World Wildlife Fund … Wikipedia
The Conservation Fund — is an American environmental non profit with a dual charter to pursue both economic development and environmental preservation. The Fund partners with community, government and corporate leaders to fulfill their conservation priorities. With… … Wikipedia
Estonian Nature Fund — Estonian Fund for Nature (Eestimaa Looduse Fond) or ELF is an Estonian environmental non profit organisation.Mission Mission of ELF is to preserve the rich natural diversity in Estonia and the world through active cooperation with individuals,… … Wikipedia