Kötvény 2027 is a fixed-term, capital-protected investment structure available in Hungary, designed to be held until its maturity in May 2027. It allows a one-off amount to be placed into a low-risk structure with a predefined return, provided it is held to the end.

For many business owners, the most difficult investment decision is not where to take risk, but where not to. There is often a portion of capital that simply needs to stay intact for a defined period. Not for growth. Not for speculation. Just parked, predictable, and available when planned.

In Hungary, there are a few structured options designed specifically for this mindset. Kötvény 2027 is one of them. It is not widely discussed, and it does not try to be exciting. But for the right type of decision-maker, it is worth understanding how it works before dismissing it.

Not all capital needs to be busy

Most entrepreneurs are comfortable with calculated risk in their core business. What they are often less interested in is uncertainty around funds that already have a job to do in the future.

Short-term reserves, retained earnings earmarked for a specific purpose, or capital that simply needs to hold its value over a known timeframe tend to require a different approach. Liquidity, predictability, and clear rules matter more here than upside potential.

Kötvény 2027 sits firmly in this category. It is designed for people who prefer knowing the rules in advance, even if that means giving up flexibility along the way.

What “price protection” involves

The term árfolyamvédelem is often translated as “price protection”, but it is important to understand what this actually commits you to.

In simple terms, the protection applies at maturity only. The structure is built around a fixed end date. If the investment is held until that date, the predefined protection applies. If it is exited early, it does not.

This is not a hidden condition. It is the foundation of how the structure works.

Kötvény 2027 is therefore not suitable for funds that may need to be accessed unexpectedly. It is designed for capital that can be left untouched until maturity, without second-guessing.

How Kötvény 2027 is set up

Kötvény 2027 is a fixed-term, capital-protected investment structure available through unit-linked life insurance policies offered by Generali Biztosító Zrt..

The key dates are clearly defined:

• Subscription period: 24 January to 24 April 2026
• Start date: 4 May 2026
• Maturity date: 3 May 2027

Contributions are made as a one-off payment during the subscription period. Regular monthly payments are not part of this structure.

The underlying assets consist of forint-denominated securities issued by the Hungarian state and the Hungarian central bank. The risk profile is classified as low, and the structure is intended to be held until maturity.

There are two closely related versions, Kötvény 2027/M and Kötvény 2027/A, which differ mainly in how costs are applied within the insurance framework. The investment logic itself remains the same.

Where the return comes from

Returns are determined in two distinct phases.

First, during the subscription period, contributions earn a temporary annualised interest of 5.3%. This applies only while the fund is being set up. From a practical perspective, earlier participation during the subscription window increases the benefit of this phase.

Second, the return at maturity is defined by a formula set in advance. It is based on:

• the Hungarian central bank base rate as of 29 April 2026
• plus a fixed margin of 1.5 percentage points

The final rate is established once, before the investment period begins, and applies at maturity on 3 May 2027.

There is no attempt to predict where interest rates will move. The structure is deliberately conservative and rule-based.

Who tends to use structures like this

In my experience, structures like Kötvény 2027 tend to appeal to a specific type of decision-maker.

Typically, these are people who:

• plan in timelines rather than reacting to market noise
• are comfortable locking capital for a known period
• value clarity over optionality
• prefer to separate operational funds from longer-term reserves

It is often business owners, company directors, or individuals managing short- to medium-term capital who take the time to explore options like this.

It is less suitable for anyone who needs flexibility, frequent access, or the ability to change direction midway.

What to be comfortable with upfront

Before considering any structure of this type, there are a few points that need to be accepted calmly and honestly.

• Liquidity is limited. Early exit means the protection does not apply.
• The timeline is fixed. This is not adjustable once the structure starts.
• Returns are defined, not open-ended. There is no upside beyond what is set.
• This is not an ESG-focused product. It falls under the EU’s SFDR Article 6 classification, meaning it does not pursue sustainability objectives.

None of these are drawbacks if they align with your intention. They are simply conditions.

Understanding and accepting them upfront is far more important than focusing on projected numbers.

FAQ

Is Kötvény 2027 a bond?

Kötvény 2027 is not a single bond, but a fixed-term, capital-protected investment structure. It invests in forint-denominated securities issued by the Hungarian state and central bank, within an insurance-linked framework.

Why is it called Kötvény 2027 if subscriptions are in 2026?

The name refers to the maturity year. Subscriptions take place in early 2026, but the predefined protection applies at maturity in May 2027.

Can I access the money before maturity?

Early access is possible, but the capital and return protection apply only at maturity. Exiting before May 2027 means those protections no longer apply.

Who is Kötvény 2027 typically suitable for?

It tends to suit business owners and individuals who can commit capital for a fixed period and prefer predictability over flexibility or higher-risk returns.

Before deciding

I often speak with business owners who are not looking to “do more” with their money, but to stop worrying about a portion of it altogether. Structures like Kötvény 2027 exist for exactly that reason. Whether it belongs in your own planning depends on timelines, comfort with structure, and what that capital needs to do next.

Whether it is appropriate or not depends entirely on individual circumstances, timelines, and priorities. That is a conversation worth having properly, with context, rather than rushing to conclusions.

If you would like to understand how this type of structure might fit into your broader financial planning, I am always happy to talk it through and answer questions in plain language, without pressure.

Sometimes, the most sensible decision is simply choosing not to make capital work harder than it needs to.