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Instead, they favour players who offer a "guaranteed" return.
By providing a guaranteed return, the companies also allow lenders to charge lower interest rates.
All this makes for a promise to investors of a safe bet, and a guaranteed return.
THE Investment Company Act of 1940 bars mutual funds from offering a guaranteed return.
In effect, lenders get a guaranteed return with very little risk.
Consider T.I.P.S. Treasury inflation-protected securities offer a guaranteed return above inflation.
But hey, one percenters, why not spend your money on something with a guaranteed return?
"Your home is where you live," said Kathy Wetmore, a Houston real estate agent, not an investment with a guaranteed return.
But the MSV school ignores other participants in the economy who bear risk by investing without a guaranteed return.
An equity-indexed annuity (EIA) contract offers a proportional participation in the return on a specified equity index, in addition to a guaranteed return on the single premium.
An industry consultant says he has seen a new fund that will receive 80% of any excess above a guaranteed return linked to a well-known index.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com