Definitions for "Capital Guarantee"
The promise in a managed investment that the original capital and the interest which is credited from time to time are firm that subject to fluctuations related to market value changes.
An investment product where the company offering the product or other company associated with it, guarantees that it will return at least the original amount invested, plus any income that has accumulated. This also means the funds are generally managed conservatively to minimise the chance of any loss. The term Capital Guarantee implies an organisation with solid reserves to support its guarantee promise.
Guarantees the return of your capital and may also guarantee interest once credited to your account. The guarantee is only as good as the organisation making it. There is usually no guarantee of future earnings. (see also Mortgage trusts, Types of superannuation funds and Allocated income stream products–the basics)