Capital guaranteed funds

A capital-guaranteed fund is a fund that ensures subscribers recover the entirety of their initial investment (excluding entry fees) at a predetermined maturity date, regardless of market fluctuations.

These products (SICAV or FCP) are "closed-end funds," meaning their subscription period is limited in time (from a few weeks to several months).

To benefit from the guarantee, the subscriber must keep their savings for the entire originally planned investment duration, generally between three and six years. Most of these funds are linked to a benchmark index.

If the index rises at the fund's maturity, the investor receives, depending on the product, either a fixed return set in advance or a predefined percentage of the index's increase calculated between the investment's maturity and the subscription date.

In case of a decline, the investor does not incur any loss (excluding entry and management fees). See Formula Funds.