Principal-Protection Fund

(redirected from Principal Protection Funds)

Principal-Protection Fund

A mutual fund that invests predominately or exclusively in securities with principal protection, meaning holders are guaranteed to receive back at least what they originally invested. This results in a low risk mutual fund. However, principal-protection funds often have relatively low returns and, if the fund invests in a disproportionate number of short-term securities, can lead to higher capital gains taxes.
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Given the continued market volatility, we had anticipated a high level of interest among investors in our first four Aetna Principal Protection Funds -- and we weren't disappointed.
Aetna Index Plus Protection Fund differs from the previous Aetna Principal Protection Funds in that, after the Guarantee Period, an enhanced index strategy is employed.
Like the other Aetna Principal Protection Funds, Aetna Index Plus Protection Fund is not a balanced fund which is required to maintain a predetermined allocation between equity and fixed-income securities.
Combined sales of the first four Aetna Principal Protection Funds were more than $450 million.
Combined sales of Aetna Principal Protection Funds I, II and III were more than $400 million.
Aetna Principal Protection Fund IV is being offered to investors for just thirteen weeks - from July 6, 2000 to September 6, 2000 - with a Guarantee Period running from September 7, 2000 through September 6, 2005.
Given the continued market volatility, we had anticipated a high level of interest among investors in Aetna Principal Protection Fund I, II and III -- and we weren't disappointed.
Consistent with the first three offerings, what makes this fund unique is that, unlike a balanced fund, which is required to maintain a predetermined allocation between equity and fixed-income securities, Aetna Principal Protection Fund IV allocates assets according to prevailing market conditions.
According to Frank Litwin, head of sales and marketing for Aeltus, "the success of Aetna Principal Protection Fund I, II and III can't be measured just by the amount of sales.
Aetna Principal Protection Fund III is being offered to investors for just thirteen weeks from March 1, 2000 to May 30, 2000 - with a Guarantee Period running from June 1, 2000 through May 31, 2005.
Consistent with the first two offerings, what makes this fund unique is that, unlike a balanced fund, which is required to maintain a predetermined allocation between equity and fixed-income securities, Aetna Principal Protection Fund III allocates assets according to prevailing market conditions.
The guarantee of principal offered by Aetna Principal Protection Fund III is backed by the AAA-rated financial strength of MBIA Insurance Corporation.
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