What does Guaranteed Investment Contract – GIC- mean?

Guaranteed Investment Contracts practically assure you to reimburse the principal plus interest, over the period of time of the contract. Generally, this is a period of up to five years the most, and GICS are regarded as a no risk at all investment, as there are indeed no risks one undertakes. However, the downside of these sorts of investments is that they won’t actually bring high rewards; these are stable and safe but low rewarding investing instruments.

Guaranteed Investment Contract –GIC- explained

Guaranteed Investment Contracts can be purchased at insurance companies, and these are never subject to the market oscillation or to such factors as inflation, as these have set values which do not change over the period of the contract. One very important aspect is that you should constantly check the market status of the issuing company, so that you avoid loss due to the company’s insolvency problems for example.