Caps in investment growth are constraints set on the appreciation potential of an investment, often seen in fixed-indexed annuities or certain types of structured products.
Caps in investment growth are constraints set on the appreciation potential of an investment, often seen in fixed-indexed annuities or certain types of structured products.
These caps limit the maximum percentage an investment can earn in a given period, even if the underlying index or asset experiences greater growth.
Caps are intended to moderate investment risk by providing a safeguard against market volatility. While they restrict the potential for high returns during bullish market periods, they also commonly include a floor or a guarantee that shields the investor from losses beyond a certain point.
Caps in investment growth are constraints set on the appreciation potential of an investment, often seen in fixed-indexed annuities or certain types of structured products.
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