Principal protected notes (also referred to as deposit notes) are a type of investment that combine the benefits of a guaranteed percentage of principal at maturity with equity market growth potential. Their return is usually linked to the performance of an equity investment and the term to maturity is generally six to eight years.
Features of Principal Protected Notes
Principal protected notes allow the investor to participate in equity markets with confidence - knowing a percentage of their principal is protected at maturity. They also provide some of the security offered by segregated funds with a shorter term to maturity, more security than mutual funds, more growth potential than GICs and for non-registered investors, they offer potential tax benefits.
Investor benefits
Enables the investor to pursue equity growth potential
Guarantees a percentage of the investor’s principal is protected at maturity
Provides potential tax benefits
Principal Protected Notes are for investors at any age and, in particular, risk adverse investors who are looking to protect their wealth.
