Scottish Life International (SLI) is to offer investors a safety net to investing in the technology-...
Scottish Life International (SLI) is to offer investors a safety net to investing in the technology-weighted Nasdaq 100 index with the launch of protected.com.
The fund offers 95% capital protection with investment gains being locked in every quarter. For the current quarter, which ends on 16 June, investors will receive 61.1% of any growth in the Nasdaq. At the end of each quarter the profit rate is applied to any growth in the Nasdaq to calculate the bonus period which is then locked in for the following quarter. The profit rate will change each quarter.
If the Nasdaq has fallen in a particular quarter then no bonus is added to the 95% protected capital. Even if the index rises and a bonus is added, it is possible that the investment value could fall if the bonus payment is less than 5%.
Investors in protected.com will be able to switch, free of charges and capital gains tax, into any of the other funds, including UK and multi-index options, in SLI's protected Secure Investment Portfolio at the beginning of each new quarter.
Neil Lovatt, marketing development manager at SLI, said: "The Nasdaq offers wonderful returns but the risk is often unlimited. The protected floor will allow investors peace of mind but also a piece of the action."
The minimum investment into the Isle of Man-based Secure Investment Portfolio is £15,000 and there is a 1.25% annual management fee.
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