Alterna’s MarketTracer Term Deposit - is a deposit, linked to the most popular index in Canada S&P/TSX60, guaranteeing 100% of your investments.
The index is based on shares of the 60 largest companies in Canada (blue chips).
The term of the non-redeemable deposit is from 3 to 5 years.
The level of minimum investment is 500 CAD.
The Alterna’s MarketTracer Term Deposit is insured to the sum up to 250 000 CAD.
Key Features of the MarketTracer Term Deposit
- Principal Protection: Your initial investment is 100% guaranteed, providing peace of mind against market downturns.
- Market-Linked Returns: The return on investment is tied to the performance of a specific market index or group of stocks, offering the potential for higher returns compared to standard term deposits.
- Term Options: Available in various term lengths, allowing investors to choose the duration that best fits their financial goals.
- Deposit Insurance: Eligible for coverage under the Deposit Insurance Corporation of Ontario (DICO), ensuring protection up to applicable limits.
How the MarketTracer Term Deposit Works
Upon maturity, the return on your investment is determined by the performance of the linked market index over the term period. The final payout is calculated based on the percentage change in the index, subject to any applicable caps or participation rates specified at the time of investment.
Considerations Before Investing
- Market Risk: While your principal is protected, the return is subject to market fluctuations, which can impact the final payout.
- Liquidity: Funds are committed for the term length and may not be accessible before maturity without incurring penalties.
- Tax Implications: Earnings may be subject to taxation based on your individual tax situation and account type.