Tutorial: Best Garant


What is the Best Garant product line?

The essential features of the Erste Group Best Garant products are the capital guarantee, the medium-term maturity of up to five years, and the annual minimum interest payout or minimum redemption above 100%. On top of that, Erste Group Best Garant products offer you the chance of an additional return based on the development of the underlying instrument.

How does the Best Garant product line work?

If the underlying instrument goes the expected way, you participate in its performance and receive an attractive bonus return on top of the minimum return. Your participation in the development of the underlying is only partial, or up to a certain cap. In return the issuer grants you the capital guarantee. If the underlying goes against expectations, the capital invested is still safe and you receive a minimum payment in accordance with your agreement.

Depending on the structure, you may also benefit from sideways or negative movements of the underlying on top of the return you may have earned from its price increases.

Your benefits

The focus of this group of products is the capital guarantee and the attractive minimum return. In addition to that, Best Garant products offer you the chance for surplus returns that may be substantially above the market yield.

Your advantages

  • You have the chance of attractive returns.
  • Your capital invested is fully protected.
  • At the end of maturity, you receive a minimum coupon or a minimum redemption payment.
  • You participate in the development of domestic and international markets.
  • Straightforward terms – the maximum maturity is five years.

Details you should be aware of

  • The capital guarantee only applies to the end of maturity.
  • Between issue date and maturity, price fluctuations may occur, and selling prior to maturity may result in a loss.

How does the Best Garant product line react to...

… rising, stable, or falling markets?
Depending on the structuring of the product, the price development hinges on the underlying instrument. Best Garant products may benefit from rising, sideways, and falling movements in the markets, which is why you would have to look into the structuring of the specific product.