Capital Guarantee Fund

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Dictionary Says

Definition of 'Capital Guarantee Fund'

An investment vehicle offered by certain institutions that guarantees the investor's initial capital investment from any losses.
Investopedia Says

Investopedia explains 'Capital Guarantee Fund'

Even though these products prevent investors from losing their invested capital, they also limit the amount of return that investors can obtain if the investments appreciate. This is how the offering institutions can afford to guarantee the principal investment.

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