Index-linked bonds

Investments without risk of capital loss.

Investments into index-linked bonds is interesting alternative to classical long-term deposits. The main advantages of index-linked bonds are:

• high potential yield,
• guaranteed principal amount in the end of definited term,
• possibility to sell index-linked bonds before end of definited term,

Investments into index-linked bonds are similar to investments into shares though in distinction from direct investments into shares or investments into funds, Nordea guarantees you to pay back the full nominal value of bonds at the moment of bond redemption even if the index increase has been negative. The potential return is higher than interest on the deposits and can be compared to profit from shares or investment funds.

The repayment period of index-linked bonds is usually from 2 up to 6 years, although if you suddenly need your money back earlier, you can receive a credit against bonds or to sell the bonds ahead of time.