Norwich Union is launching the Capital Protected Plan 2 which is designed to return twice the rise in the FTSE 100, up to a specified maximum, and protect an initial investment.
Two versions of the Plan are available giving customers a choice of investing for three or six years.
The three-year plan offers the return of the initial investment plus twice the percentage rise in the FTSE 100 Index, with the total amount paid capped at 27%.
The six-year plan offers the return of the initial investment plus twice the percentage rise in the FTSE 100 index, with the total amount capped at 72% (see example below).
For both plans, capital protection and investment returns only apply if the plan is held for the full term. If the plan is cashed in early the investor will receive the underlying value of the investment at that time, which could be less than the original amount invested. Partial encashment during the term is not permitted.
John Clougherty, managing director of retail investments at Norwich Union, said: ”This latest version of Norwich Union’s Capital Protected Plan gives customers a simple, fixed-term investment that offers them the chance to benefit from growth in the FTSE 1000 and provides the reassurance that their original investment is protected. The structured product market is growing fast and is proving attractive to investors who are made nervous by volatile stock markets.”
Minimum investment in the plan is £1000. There is no maximum investment, but usual ISA limits apply if the investment is held in an ISA (6 year Plan only). Returns are taxed as capital gains, unless held within an ISA.
Following investor ‘criticism’
Threat of trade war escalating
20-plus years of consecutive dividend increases
Make process simple
Will assess regulation