Merrill Lynch International has brought out a protected product linked to the FTSE 100 index an...
Merrill Lynch International has brought out a protected product linked to the FTSE 100 index and offering investors a 115% return of capital.
The Protected Bonus Plan, available for the 2003/04 Isa seasons, promises to return all initial capital invested and provide at least a minimum 15% return, even if the index falls over the six year life of the product.
The final level of the index is calculated as its average during the final 12 months of the contract.
If the FTSE rises investors will share 50% of any gains, up to a maximum of double the original outlay.
For a £10,000 investment the minimum return would be £11,500 and the maximum £20,000.
The Protected Bonus Plan is available for Peps and Isas as well as for direct investments. Applications close on 25 April and the investment term starts on 12 May. There is 3% interest earned on money invested before the start of the investment period.
The minimum investment is £7,000 either direct or through an Isa.
There is 3% commission available to intermediaries. All Merrill Lynch's charges are built into the costs of the plan.
David Egerton, derivatives marketing manager at Merrill Lynch, said: 'The minimum return on offer means there is no 'opportunity cost' through missing out on interest, as there is with products offering just 100% capital security.'
For more information call 020 7996 1480.
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