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ADVICE-Updated November 6, 2025

ActionGICs: where safety and performance converge.

ActionGICs: where safety and performance converge.

Yes, you can invest in the stock market without putting your capital at risk.
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3-minute read

When shopping around, you’re going to seek out an investment that’s a good fit for your profile. If you’re in the market for more safety and higher returns, you should know that there’s an investment option out there that might just be the perfect fit for you. Armed with its one-of-a-kind features, a market-linked GIC—referred to as an ActionGIC here at Laurentian Bank—can get you the best of both worlds.



What’s an ActionGIC, exactly?


With ActionGICs, the principal—the amount of money you initially invest—is 100% guaranteed. Returns, however, are tied to market performance, and any interest earned at the end of the investment term is calculated using a reference index, which is also known as a stock market index.1


At Laurentian Bank, reference index stocks are based on returns, reliability and diversity. Our experts regularly monitor stock market index performance and adjust periodically for higher return potential.


This product is eligible for deposit insurance from the Canadian Deposit Insurance Corporation (CDIC) up to the maximum limit for coverage from the CDIC and subject to applicable conditions.



Why is it important to diversify your investments?


To be sure that an ActionGIC is a good option for you, it’s important to know your investor profile first, which basically means having a solid grasp of your investment goals, risk tolerance, investment horizon, financial and personal situation. Once that’s done, go on a fact-finding mission to learn about all the investment options available so that you can make the right choices for you and invest with confidence.


Given today’s economic landscape, diversification is more important than ever. It’s best to vary the contents of your investment portfolios as much as possible. That might entail, for example, opting for a blend of ActionGICs and fixed-rate GICs, which will provide a certain level of guaranteed returns and leave room for higher return potential at the same time, depending on stock market performance of course. You can also diversify your investment terms, which will give you more flexibility and open the door to more opportunities.



Who’s the right fit for an ActionGIC?


ActionGICs are an excellent option for several kinds of investors, depending on what your goals are. You need to be okay with a certain level of risk, since they’re tied to the stock market. Even though it’s rare, an ActionGIC may provide negative or zero returns. In such cases, your principal will be protected, but you won’t earn any interest, unfortunately. However, some ActionGICs offer a minimum guaranteed return in addition to the guaranteed principal.


There are many reasons to make ActionGICs a part of your investment strategy. Keep reading for two illustrative real-life case studies.



1st Case Study: Protecting an inheritance.


When her mother passed on, Ashley2 inherited $200,000. Although she would normally invest in mutual funds, it was important for her to protect her mother’s money, since she had worked so hard saving for it. That said, Ashley was also interested in benefiting from the returns possible when you invest in the stock market. After discussing goals and reviewing her investor profile with an advisor, Ashley decided to invest in an ActionGIC—the perfect balance between her desire to protect her mother’s principal and take advantage of solid return potential.



2nd Case Study: Investing the proceeds from the sale of a second home.


After the sale of her cottage generated a profit of $250,000, Jessica2 wanted to buy a car and invest the rest—but prudently. Her advisor suggested that she set aside the amount allotted for the car in a High Interest Savings Account (HISA), which would earn her interest while still giving her access to the funds whenever she wanted. For the remainder, she invested a portion in fixed-rate GICs to guarantee returns, and another portion in ActionGICs to tap into the earnings potential offered by the stock market.



Our ActionGICs: invest in Canada, without all the risk.


At Laurentian Bank, we have ActionGICs that can take your savings to the next level and support the Canadian economy at the same time. You can choose to invest in Canadian or local businesses—or keep it to companies that are environmentally responsible. The choice is yours.


Every individual is, well, an individual, with goals that are unique to them. That’s why our advisors are standing by to help you determine whether ActionGICs are the right fit for your investment portfolio. If you decide that they are, your advisor will be able to help you choose the ActionGIC that will help bridge the gap between you and your goals.



Explore our ActionGICs


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Laurentian Bank: Laurentian Bank of Canada.

LBCFS: LBC Financial Services Inc.

GIC: Guaranteed Investment Certificate

Existing investment accounts are offered by Laurentian Bank of Canada or LBC Financial Services Inc. LBCFS is a wholly-owned subsidiary of Laurentian Bank and a separate legal entity from Laurentian Bank, B2B Trustco and all other issuers or mutual fund companies whose products it distributes. Newly opened investment accounts will be offered by LBCFS. Every Laurentian Bank advisor is also a licensed LBCFS mutual fund representative. LBCFS’s liability is limited to the conduct of its representatives in the performance of their duties for LBCFS.

  1. A return may be nil at maturity unless it is subject to a guaranteed minimum rate of return. The minimum or maximum rate of return will be determined and disclosed prior to issuance. Your actual rate of return is contingent upon the performance of the reference index. As applicable, the rate of return is non-compounding over the term of the ActionGIC and calculated solely on the initial investment, which along with the applicable rate of return, is paid at maturity. The minimum and maximum rate of return may vary between issuances. The posted rate corresponds to the maximum rate AND MINIMUM RATE OF RETURN. The final rate of return of a Laurentian Bank ActionGIC is calculated based on the performance of the reference index between the issue date and the maturity date of the investment. If applicable, the rate of return is subject to the maximum and minimum rate of return. The value at maturity is obtained by calculating the average value of the index at closing, on the three dates for the calculation of the reference index as specified in the purchase agreement. The final return of the reference index is determined by calculating the sum of the return for each share in the reference index during the period divided by the number of shares making up the reference index. Since the rate of return of this investment depends on the performance of a reference index comprised of securities, any fluctuations in the reference index will affect the investment's final rate of return and if applicable, will determine if a maximum or minimum rate of return will apply. Past performance is not an indicator of future performance. This investment is eligible for a non-registered or a registered plan such as an RRSP, RRIF or TFSA. A minimum investment of $500 is required. This product is eligible for deposit insurance from the Canadian Deposit Insurance Corporation (CDIC) up to the maximum limit for coverage from the CDIC and subject to applicable conditions. Laurentian Bank of Canada, Laurentian Trust of Canada Inc, LBC Trust are members of the CDIC. The terms and conditions of this product are available at the branch. Laurentian Bank of Canada reserves the right to modify, suspend or withdraw this offer at any time without notice. If applicable, since the ActionGIC is issued on a fixed date following an initial subscription period, any amount received before the issue date of this product will be invested in a short-term GIC ("Pending ActionGIC") before the final issuance of the ActionGIC. The principal and any interest earned (annual fixed, simple interest, calculated daily) during this period will be automatically added at maturity of the Pending ActionGIC to the investment of the ActionGIC.

  2. The first names have been changed in order to preserve the anonymity of the persons.

The articles on this website are for information purposes only. They do not create any legal or contractual obligation for Laurentian Bank and its subsidiaries. These articles do not constitute financial, accounting, legal or tax-related advice and should not be used for such purposes. Laurentian Bank and its subsidiaries may not be held liable for any damage you may incur as part of such use. Please contact your advisor or any other independent professionals, who will advise you as needed. The articles may contain hyperlinks leading to external sites that are not managed by LBC. LBC cannot be held liable for the content of such external sites or the damage that may result from their use. Prior written consent from the Laurentian Bank of Canada is required for any reproduction, retransmission, publication or other use, in whole or in part, of the contents of this site.