Structured products are cheaper, simpler and can deliver better returns than alternative low risk investments, according to Keydata Investment Services.
The firm’s research shows its Dynamic Growth Plan has delivered 80% growth over its five-year term, outperforming over £52bn invested in UK actively managed low risk funds.
It says the plan has beat many IMA sectors – including 100% of Gilt, Index Linked Gilt, and Corporate Bond funds; 97% of Cautious Managed funds and 82% of Balanced Managed funds.
The Keydata structured product offers investors double of any growth in the FTSE 100 Index over a five year period, with capital protection unless the falls by over 50% during the term and fails to recover.
“Assuming no growth in the underperforming funds over the next year investors will have to pay £527 million in annual management charges, on money that for many funds would have better been left on deposit,” Keydata sales director Mark Owen says.
"Structured products are now demonstrably cheaper, simpler for investors to understand and can generate greater returns than other low risk investments.
“It’s time investors started receiving value for money.”
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