Investment ISA: 7.7% fixed annual income

Investment ISA: 7.7% fixed annual income

23 March 2012 / by Oliver Roylance-Smith

“With income the clear favourite in the run up to the end of the tax year, the latest release from Morgan Stanley is an exciting and timely launch and stands out as one of the best income plans ever launched to the market.

The FTSE Income Plan offers a fixed income of 7.7%, paid regardless of the performance of the FTSE and the highest yield for this type of investment that we have seen. The plan has a 5 year term and your capital will be returned in full at the end of the investment term unless the FTSE has fallen by more than 50% (known as conditional capital protection).

If initial responses are anything to go by, we expect this plan to be extremely popular and you are also able to take advantage of your ISA allowance for both the current tax year and the next, as well as transfer existing ISAs and make non-ISA investments."

Oliver Roylance-Smith, head of investments and savings

Learn moreand apply for the Morgan Stanley FTSE Income Plan »

This is a structured investment plan that is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the FTSE 100 Index.

There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term. The past performance of the FTSE 100 Index is not a guide to its future performance.

If you are at all unsure of the suitability of this type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.