Index-linked bonds is an investment devoid of the risk to lose capital. Besides, it is an interesting alternative to classic long-term deposits.
- High potential yield
- Guaranteed principal amount that will return to you upon maturity irrespectively of market growth
- Option to dispose of the bonds before the defined term
Investing in index-linked bonds is like investing in shares, but, the difference from direct investments in shares or investment funds is that in this case Nordea secures a repayment of the entire principal amount of bonds to you upon their maturity even if the index growth has been negative. The potential yield exceeds that of term deposits and it comes close to those of the one of shares or investment funds.
A number of index-linked bond programmes with various investment strategies are recurrently offered in campaigns, it means yet new and attractive ways to invest.
Maturities for index-linked bonds usually range from 2 to 6 years, but in case you need the funds sooner than that, you have the option to sell them before they mature. It should be regarded, though, that selling these bonds before they mature entails a risk of loss in the case when the actual market prices of bonds are lower than their acquisition cost.