What does Bullet GIC mean?

The option of Bullet GIC, or guaranteed investment contract, involves the fact that there will be made no payments whatsoever before the contract reaches maturity. The advantageous side is that the bullet bond commits itself in a way to pay a certain set interest for the whole period of time.

Bullet GIC explained

Firstly, Bullet GIC represents a very low degree of risk in the broader sense. They keep to the fixed rate of interest, and no matter how the insurance market is moving these interest rates are not subject to change. Bullet bonds generally represent a costlier option compared to the callable bonds which are always subject to the market fluctuation.

It is an advantageous type of investment, although these bullet bonds are a little bit more expensive, they protect the investor in the sense there is not a high degree of risk involved. Especially because it is such a secure option, rewarding is generally minimal, but these definitely constitute the perfect solution for beginner investors. Making bullet bonds your first choice, you will slowly but steadily be able to build yourself a solid package of investment market related knowledge, plus it is a profit generating option as well.