So far in 2020, market volatility has increased to levels we haven’t seen in over 10 years, since the 2008–2009 financial crisis. All this instability will impact how investors approach their financial planning. Since hitting a low in mid-March, markets have rallied somewhat in the wake of renewed optimism. That said, we’ll likely be living with volatility for a while.
With the extended tax filing deadlines, you may still be expecting a tax refund, if you haven’t received one already. In the current climate of market volatility, you might be hesitant to invest it because of fears that the downturn isn’t over.
That makes structured notes an ideal choice right now: you get to potentially benefit from downturn opportunities while protecting your principal. They’re also TFSA-eligible, so you can grow your money tax-free.
Desjardins Principal Protected Notes: An innovative way to round out your portfolio
With Desjardins Principal Protected Notes, you get principal protection at maturity plus the potential for stock market returns, all in a single, highly liquid investment. Launched in January 2019, our notes can be tailored to suit any market conditions, opportunities and interest rate variations. That means you can benefit from a range of market outlooks: bullish, stable verging on bullish, bearish, or due for a correction followed by a recovery.
Advantages of Desjardins Principal Protected Notes
In addition to providing industry and/or geographic diversity, this type of investment combines the following benefits:
- Full principal protection at maturity
- Stock market return potential
- Potential to earn a higher return than you would with a traditional fixed income product like a guaranteed investment certificate (GIC)
- Unique market exposure provided by the structure of the note
- Liquidity and flexibility
- Redeemable at any time (under certain conditions; fees may apply)
- Various terms available, depending on market conditions
- Minimum investment of $1,000
- Can be included in a registered plan or held separately
For more information: Desjardins Structured Notes