A principal-guaranteed fund shall be distinguished as either a capital-guaranteed fund or a capital-protected fund based on whether the fund is backed by the guarantee of an institution. A capital-guaranteed fund is one in which, through a guarantee provided by a guarantee institution during the duration of the fund, a beneficiary will receive a prescribed ratio of guaranteed principal at the maturity of the fund. A capital-protected fund is one in which, through the operation of the fund's given investment instruments, a beneficiary will receive a prescribed ratio of protected principal at the fund's maturity.
A capital-protected fund is one that has no guarantor institution to provide a mechanism for guarantee.
The ratio of principal guaranteed by a guaranteed-principal fund shall not be less than 90 percent of investment principal.
In order to increase the investment efficiency of a principal-guaranteed fund, a SITE may, while observing applicable regulatory provisions, use interest or non-guaranteed principal to trade in securities-related products on either domestic or foreign centralized securities markets or OTC markets.

A capital-guaranteed fund shall be guaranteed by a guarantee institution with a credit rating at or above a prescribed level from an FSC-approved or recognized credit-rating institution.
The public prospectus and the marketing materials for a capital-protected fund may not use the terms "guaranteed," "safe," "risk-free," or other similar terms, and in addition, shall explicitly state that the fund provides no mechanism by which it may be guaranteed by a guarantor institution.

When maintenance of principal so requires, a principal-guaranteed fund may be placed on time deposit at a financial institution with a credit rating at or above a prescribed level issued by an FSC-approved or recognized credit-rating institution, with no ceiling on its deposit ratio.