Barclays Wealth has launched a new product which offers exposure to growth in the FTSE 100 without putting capital at risk.
The six-year FTSE Returns plan offers a return of 1.5 times the first 28% rise in the FTSE 100, up to a maximum of 42%.
It also has a lock-in feature which will automatically secure 14% if the FTSE is 14% or more above its starting level after two years; and 28% if the index is 28% or more above its starting level after four years.
In addition, the plan offsets the risk of market timing by including averaging over the first three months and the last three months of the term to determine the starting level and final level respectively.
Investors' capital is fully returned at maturity, irrespective of market performance.
Lisa Chaudhuri, vice president, Barclays Wealth, says: "Our new FTSE Returns plan is ideal for investors looking for a respectable return from equity growth.
"With all the uncertainty surrounding the economic landscape following the election, and with many investors wary of a double-dip, we have added averaging at the start and end of the investment term to help offset the risk of market timing. And, as an added bonus, investors will get their capital back at maturity, irrespective of the performance of the index."
The structured product is open for investment until 28 June 2010, set at a minimum of £3,500. It is available at ISA, SIPP and SSAS, with commission at 3%.
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