Re: what is Guaranteed Investment Contract (GIC) and some more questi# Business - 商学院
y*g
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GIC is typically sold by an insurance company to a pension fund. The yield to
maturity is guaranteed by the insurance company, that make it look like a
bank CD. There is important difference between CD and GIC: There are certain
withdrawals without penalty allowed by the insurance company, unlike CD. In
summary, the GIC provide the liquidity like a money market fund while provide
yield comparable to CD which is typically higher than money market fund.
【 在 maryjan (在海一方) 的大作中提到: 】
maturity is guaranteed by the insurance company, that make it look like a
bank CD. There is important difference between CD and GIC: There are certain
withdrawals without penalty allowed by the insurance company, unlike CD. In
summary, the GIC provide the liquidity like a money market fund while provide
yield comparable to CD which is typically higher than money market fund.
【 在 maryjan (在海一方) 的大作中提到: 】