Guaranteed trust


 

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Guaranteed trust

Some unit trusts offer a floor price and guarantee their bid price will not be allowed to fall below that level. They also 'lock in' any growth achieved every few months.From an investor's point of view, this guarantee provides reassurance about the value of their investment. Even if the value of the trust's assets falls well below the floor, the bid price (the amount that an investor can sell his units for) will remain at the guaranteed level.



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A life and health insurance policy feature that enables the insured to add coverage at future times and at fixed and agreed-upon rates regardless of health conditions.


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