What does a 90% capital guarantee at maturity imply for investors?

A 90% capital guarantee at maturity indicates that investors can expect to receive a minimum of 90% of their initial investment when the investment matures. This means that if investors put in a certain amount of money, they are assured that, at the very least, they will get back 90% of that amount, even if the investment does not perform well or if there are fluctuations in the market.

This assurance is particularly appealing to risk-averse investors who want to protect their capital while still having the opportunity to earn some returns from the investment. The remaining 10% of the principal could potentially be lost if the investment performs poorly, but the guarantee protects the majority of the initial investment.

It is important to note that while this guarantee provides a safety net, it does not imply that investors are completely free from risk, as they may still face other risks related to investment performance or inflation over the investment period.