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When we think of asset classes, there are 2 types: stocks and bonds. Where does an investment like a GIC fit in? It is not a bond, nor is it a stock.

Chris W. Rea
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Victor123
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2 Answers2

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There is a third type of asset that a GIC falls into: Cash.

So while it does share some characteristics of a bond, such as (often) having a fixed interest rate, and having the ability to ladder their maturities, they would generally be considered part of your Cash component of your portfolio.

sdg
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Instead of "stocks" I would refer to that asset class as "equity." Instead of bonds, I would refer to that asset class as "fixed income." Given that more general terminology, GICs would fit into fixed income.

Jason B
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