Scottish Mutual is launching the fourth tranche of its Income and Growth Plan as a three-year invest...
Scottish Mutual is launching the fourth tranche of its Income and Growth Plan as a three-year investment plan with safety nets for capital protection.
Available between 30th September and 22nd November, the products are a combination of a maxi or equity Isa or a direct share investment which buys shares in Dublin-based Quaich Investments 8 plc. Entry could be closed if the product is fully subscribed.
Investors can choose whether they want to take the earnings for the Balanced Income and Growth option as either 1.9% quarterly income, 8% annual income or growth of 25% payable at the end of the term.
Those who prefer the slightly safer Steady Income and Growth option will earn 1.45% quarterly income, 6% annual income or 18.5% at the end of the term.
Capital protection clauses have been added to the products, so all initial funds will be returned providing the Eurostoxx 50 index - which is the index tracked - does not fall 25% between 6 June 2003 and 22 November 2005, or at least manages to pull back to its starting level, even if the index does fall more than 25% during the life of the product.
Officials say there is a higher chance of the Eurostoxx 50 index breaching it starting level and falling 25% within the early stages of the product, which is why index tracking is postponed until June next year.
Further details of charging structure and commissions to follow.
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