Guaranteed Investment Fund - GIF


DEFINITION of 'Guaranteed Investment Fund - GIF'

A type of investment product offered by insurance companies that allows its client to invest in an equity, bond and/or index fund while providing a promise that some predefined minimum value of the fund (usually, the initial investment amount) will be available at the fund's maturity or when the client dies. Insurance companies usually charge up to 1% of the investment amount per year for this service.

BREAKING DOWN 'Guaranteed Investment Fund - GIF'

Some guaranteed investment funds also give people the opportunity to "reset" the guaranteed amount during specific periods of time. This allows investors to lock in greater sums in the event that they incur a large capital gain.

For example, suppose an investor near retirement age had invested $500,000 into this fund and after a incredible bull run, his investment grows to $585,000 in a year. By resetting the guarantee at this point in time, the investor has now guaranteed that he will at the very least receive $585,000.

  1. Issuer

    A legal entity that develops, registers and sells securities ...
  2. Guaranteed Minimum Accumulation ...

    A rider on a variable annuity, which guarantees the minimum amount ...
  3. Guaranteed Bond

    A debt security that offers a secondary guarantee that interest ...
  4. Index Fund

    An index fund is a type of mutual fund with a portfolio constructed ...
  5. Guaranteed Minimum Income Benefit ...

    A type of option that annuitants can purchase for their retirement ...
  6. Guaranteed Lifetime Withdrawal ...

    A rider on a variable annuity that allows minimum withdrawals ...
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