GIC (Guaranteed Investment Certificate)

GIC (Guaranteed Investment Certificate) – A Guaranteed Investment Certificate (GIC) is a fixed-income investment that guarantees the return of the principal along with a fixed or variable interest over a specified term. GICs are considered low-risk instruments, making them suitable for conservative investors seeking capital protection. Key Features: Principal Protection: The invested amount is secure. Guaranteed Returns: Offers predetermined interest over the investment period. Fixed Term: Can range from short-term (a few months) to long-term (several years). Low Risk: Insulated from market fluctuations.

Example: An investor deposits ₹5 lakh in a 3-year GIC at an interest rate of 6% per annum. At maturity, the investor receives ₹5 lakh principal + interest earned