Guarantee Income Certificate is one of the safest investments that you can make, that will fetch you a good interest in the deposit that you make. It is important that you do not make any withdraws in GIC because you might have to pay some penalties. Even though the majority of the population knows about GIC, they do not know the complete details about it. In this article, we will see some of the most important aspects of GIC in detail.
Better long term returns
It is an undeniable fact that most of the investments have a lot of risks involved. Especially if you are making investments in some volatile markets, there is a high risk involved. But that is not the case when it comes to GIC. It is considered to be one of the best long-time investments if no withdrawals are made within the limited time period. It is said the Gic rates has gone up from 4.1 percent to 4.9 percent per year. A better thing to invest we really do not think so. If you are expecting some big in the long term, GIC is without a doubt the ideal investment to make.
We have come to a point where investments in small levels will not fetch anyone a considerable amount. It is because the investment environment has expanded its boundaries. The market valuation is very high that a normal cannot make a reliable investment. It is one of the biggest threats that the whole world is going to face in the future. In this situation, if there is a risk-free investment, it is nothing less than a boon. So it is essential the everyone makes the most of it in GIC.
A global heavyweight
Most of the people tend to think that GIC is a very local thing. But the truth is that it is one of the sovereigns in the world. To be more precise, it is the eighth largest sovereign in the world. It manages around 344 billion USD worth assets according to the sovereign wealth fund institute. It is also one of the three entities along with the Monetary Authority of Singapore and Temasek Holdings that manages the investments on Singapore’s Reserves.
Asset Mix unchanged
GIC is not the kind of thing that goes through a lot of change when it comes to its assets. They remain unchanged for a long time. The nominal bonds consist of 32 percent, the market equities are off 29 percent, emerging market equities is of 18 percent, 9 percent private equities, 7 percent in real estate and 5 percent in inflation ink bonds. The =re is not much change in spite of the drastic change in the market conditions. So it concentrates more on long term horizon. In a situation where most of the market conditions are volatile to have something that is this rigid is really great.