Market-linked GIC

What is it?

A Market-Linked Guaranteed Investment Certificate (GIC) is a term investment linked to the performance of stock market indexes. The better the markets perform, the more interest you’ll earn. At Conexus, Market-Linked commission or management fees charged on your deposits and your principal value (initial amount invested) is guaranteed by the Credit Union Deposit Guarantee.


What can I use it for?

A Market-Linked GIC can be used to invest in a RRSP, TFSA, or non-registered savings accounts. If you’re seeking a balance between risk and reward, this might be a great option for you since Market-Linked GICs provide safety by guaranteeing the principal amount while also having the potential for higher returns from riskier investments. This is also a great option for those that want to grow their savings while protecting their initial investment or for those who can commit to leaving their money invested for the specified term to maximize potential returns – in other words, you have a medium- to long-term goal you’re saving for.

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Why invest in a Market-linked GIC?

Potential for higher returns

Market-Linked GICs are linked to the performance of the products, often referred to as the “reference index” or “benchmark”. When these perform well over the term, it can lead to higher returns for you.

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Low maintenance investment

For those that do not want to actively manage their portfolio, Market-Linked GICs offer a hands-off approach to investing.

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Diversification

Market-Linked GICs can provide you with exposure to various products (like stocks), and also allow you to invest in things that you value most, like the environment or Canadian-specific companies.

How does it work?

Not all financial institutions offer Market-Linked GICs, and not all Market-Linked GICS are the same. To invest in Conexus’ Market-Linked GICs, you’ll want to book an appointment with us. We’ll manage the investment on your behalf and provide you with updates periodically on the performance of your investment.

Conexus has two types of Market-Linked GICs for you to explore:

Canadian Mix

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Non-redeemable and must be held until maturity

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This product has 3 year and 5 year term options available

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This investment is made up solely of Canadian companies and invests in currently 20 companies

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The capital you invest is 100% guaranteed when the investment comes due (after your term)

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The investment is eligible within registered plans such as a TFSA or RRSP

You can invest in a non-registered plan; however, the interest income will be taxed each year during the term

Eco Mix

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Non-redeemable and must be held until maturity

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This product has 3 year and 5 year term options available

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This investment option invests in companies who care about the environment. Currently, the Eco Mix invests in 20 companies from economic sectors in Canada, Australia, Europe and the USA.

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The capital you invest is 100% guaranteed when the investment comes due (after your term)

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The investment is eligible within registered plans such as a TFSA or RRSP

You can invest in a non-registered plan; however, the interest income will be taxed each year during the term

Once your term is due, the cash value at the time will be moved into an account of your choosing.

Market-Linked GICs calculate interest based on the performance of the underlying products, typically market indexes and benchmarks. The return is tied to how well these items perform over a specified term. The rates for Market-Linked GICs also vary depending on a variety of factors including the type of market GIC, the term length, and the policies of the financial institution.

It’s important to talk to an advisor when considering a Market-Linked GIC to ensure it aligns with your overall financial strategy.

Is this right for you?

Right for you if you: 

  • You're seeking balanced risk and reward. You want the potential for higher returns than other traditional investments, but still value some level of protection (since your principal amount is guaranteed).

  • If you’re interested in benefiting from market performance without directly investing in stocks or other securities. This way, you don’t have to monitor how your stocks are doing, but you’re still benefiting from the market index.

  • If you have a medium-term investment horizon and are comfortable with the specific terms and conditions of the market linked GIC. If you’re able to leave your money invested for the specified term, you’ll maximize your potential return.

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May not be right for you if you:

  • If you prioritize guaranteed returns and are risk averse. A traditional GIC or other term investment may be more suitable for you.

  • You don’t have a good understanding of how the underlying products work or you’re uncomfortable with potential market volatility. Market-Linked GICs don’t provide guaranteed returns, so if your underlying products are performing poorly, you may receive little or no interest at the end of the term.

  • You need access to your funds before the maturity date of the market linked GIC. Market-Linked GICs have a set maturity date, so withdrawing your funds before this may result in penalties or reduced returns. This means your money is tied up for the duration of the term, which could be a few years.

Accounts for your Market-linked GICs

You've settled on a Market-Linked GIC, and it aligns perfectly with your financial objectives. It's time to choose the right account to invest your funds in and watch them flourish. Discover the array of options that Conexus in partnership with Credential Securities, provides access to – there's a wealth of opportunities waiting for you!

An RRSP is a government-registered retirement savings plan that offers tax benefits today by reducing your current income tax, and it allows your money to grow tax-free until retirement when you'll likely be in a lower tax bracket. It's a smart step for your financial future.


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If you're 18 or older in Saskatchewan and have a valid social insurance number (SIN), the TFSA is your gateway to saving and earning money without the burden of taxes. With a TFSA, your contributions and the income you generate within the account are tax-free, even when you decide to make withdrawals. It's a lifelong opportunity to grow your wealth while keeping more of what you earn.


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At Conexus, we have a range of investment accounts designed to help you achieve your financial goals. Explore the benefits and differences of popular accounts like a TFSA, RRSP, RESP, and more.


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Have questions? That’s what we’re here for!

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Give us a call

Have questions about which investment option is most suitable for you?

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Schedule an appointment

Want to learn more about investing? Book an appointment with one of our advisors.

Tools & Resources 

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Disclaimer

Mutual funds, other securities and securities related financial planning services are offered through Aviso Wealth, a division of Aviso Financial Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. Qtrade and Qtrade Direct Investing are trade names and/or trademarks of Aviso Wealth Inc. and its subsidiaries.

Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.

Protect yourself from fraud: Be vigilant against phishing and spoofing attempts. Always ensure you are on our official website by checking the web address and security indicators. We will never ask for sensitive information via email or redirect you to unfamiliar sites. If in doubt, contact our Member Contact Centre immediately. Learn more about ways to protect yourself from fraud by visiting: https://www.conexus.ca/security/