Friday, August 21, 2009


The Latest on Stock-Like Returns Without Risk

...Equity-linked certificates of deposit have been around for a while, created by Chase Manhattan Bank two decades ago. Like equity-indexed annuities they promise returns linked to the stock market without the risk of loss. The CDs are not actually invested in stocks. Instead, the issuing bank promises the investor a return that is tied to the stock market in some way. If the stock market tanks, you still are guaranteed the return of your original investment. Some even guarantee a minimum rate of return. If stocks do well, you receive a return that could exceed the interest rates earned on traditional CDs...

KCI Investing: The Latest on Stock-Like Returns Without Risk

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