The stock market can be volatile and investing is always a risk, but a new protected fund from Norwich Union aims to cater for the cautious investor.
The Norwich Active Protector Fund, to be launched on March 1st, aims to provide long-term capital growth whilst protecting the share price from falling below 80 per cent of its peak level.
The fund combines both active and protected components. The active part is linked to returns from a mix of equity and bond funds, whilst the protected component invests in short-term cash deposits.
The manager moves investments between the two components in order to deliver the highest prospects for growth but also maintain the level of protection.
"We believe this fund could be ideal for cautious investors who want an investment that is partly linked to equities but who are concerned about stock market falls and are looking for some degree of protection," said Neil Davies, head of investment at Norwich Union.
There is still a risk to a customer's investment, as with all stock market ventures.To find out more about investments, click here.
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