markets & strategies
The average with-profits investment fund has performed significantly better than other similar low-risk investments over a 25-year period, according to Tep market maker Policy Portfolio.
For example, the average payout of a 25-year £50-per-month premium with-profits portfolio is £72,000, compared to a balanced managed fund which would give £51,000 and a UK All Companies portfolio which would give £56,000, according to research conducted by Money Management.
When a Tep is purchased the investor knows the value of the bonuses already allocated, which together with the sum assured, offer a guaranteed minimum payout, providing premiums are paid to maturity.
Brian Goldstein, managing director of Policy Portfolio, said: 'The effect of the long bear market has been to reduce investment confidence. Investors are now extremely cautious and their greatest single priority is asset protection. This is where Teps, with their minimum guarantee, come into their own.'
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