Guaranteed Funds

Mutual funds making use in their investment strategy of a combination of conservative bonds and financial derivatives. The value of the share certificate at a specified date should not fall below the set level (usually 100% of invested money). Guaranteed funds include also click funds which seek through their active portfolio management to guarantee that the value of share certificates would never during the set period fall below the set threshold (usually 90%). Even in these funds, it is necessary to assume the credit risk of issuers of the individual components of the portfolio and in the case of investments in foreign currency, also additional currency risk.