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CBA launches capital-protected index fund

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By Vishal Teckchandani
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1 minute read

Commonwealth Bank of Australia has introduced a new index fund, including a capital protection component, to the market.

The new fund, Capital Series Cornerstone, offers clients two investment strategies to choose from.

The strategy, known as the fixed income alternative, gives investors a guaranteed income of 5 per cent a year after the first year and a half of the investment, with a capital growth component of up to 45 per cent over a five-and-a-half-year duration.

The other strategy offers a capital growth return of up to 82.5 per cent if it is held to maturity of five-and-a-half years. A 100 per cent capital guarantee is offered for the fund, again if the investment is held to maturity.