Principal-Protected Notes
A fixed-income security that guarantees a minimum return equal to the investor's initial investment (the principal amount). Also known as "principal-protected products" and "principal-protected securities."
Investopedia Commentary
These investments are tailored for risk averse investors wishing to protect their investments while participating in gains from favorable market movements.
Related Links
Asset Allocation within Fixed Income
Money Market Tutorial
Determining Risk And The Risk Pyramid
See also: Catastrophe Bond, Equity Linked Noted - ELN, Fixed-Income Security, Note, Risk Averse