Nominal rate of return

A nominal rate of return is an investment that pays the rate of return that is declared. An example is a Guaranteed Investment Certificate (GIC). If the rate is 4% then this is exactly what will be paid - no more or less. Canada Savings Bonds (CSB) also have a set rate which is declared at the date of issue.

Insurance answer
Most people look for a mix of investment products. Some will be low guaranteed rate of return which is a very conservative method. Often higher risk items such as segregated funds or stocks will be considered for higher returns. These items will not have a guarantee.


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