Diversify Your Portfolio with a Market –Linked CD

Market-Linked CD Definition

A market-linked CD (MLCD) is a certificate of deposit that is linked to the performance of one or more securities or market indexes, such as the S&P 500. There are several other common terms used to refer to this type of investment, including equity-linked CD, market-indexed CD or simply an index CD as well.

Market-linked CDs are “structured” investments, meaning they are designed to meet investors’ specific financial goals. They combine the long-term growth potential of equity or other markets with the safety and security of a traditional certificate of deposit.

How Market-Linked Certificate of Deposits Work

An MLCD’s performance is dependent upon the performance of a market or index. As the market goes up, so does the CDs potential return. Some market-linked CDs guarantee a base return, but if the market does well you will earn more. The better the market performs, the higher your return will be. On the other hand, if the market does poorly, your indexed CD may earn nothing at all.

The main purpose of the market-linked CD is to diversify assets without exposing your portfolio to a high level of risk. They are best suited for buy-and-hold investors who do not require a high level of liquidity and wish to implement an asset allocation strategy that does not overweight their total portfolio in any one investment class.

Market Link CD

• Backed by Global Banks
• Principal Protected
• FDIC Insured
• Market Linked

 Who should invest in Market linked CDs?

Investors who:

Want to earn a higher potential rate of return than traditional CD can Offer

Are risks adverse but want to participate in the markets

Interested in medium -to long-term investing

Want to implement diversification in their portfolio

 call us at 407-285-1814 to learn more about the Market Linked CDs and how it fit into you investment strategy.