Norwich Union promises investors 20% return
13 July 2004
Norwich Union is to launch a guaranteed growth plan that guarantees a minimum return of 20 per cent regardless of what happens to the FTSE 100.
The scheme has been specially designed to provide a return after six years of either 20 per cent of the investor's original premium, or 65 per cent of the growth from the FTSE 100 - whichever is higher.
The growth of the top 100 companies is averaged over the final six months of the plan.
The head of investment product development at Norwich Union, Neil Davies, said: "We expect that the Guaranteed Growth Plan will be popular with customers because it offers a guaranteed minimum return if the plan is held for its full term."
The plan will only be available for eight weeks from July 26th and is a six-year single premium product. The minimum investment into the plan is £3,000.
It can be held as a direct investment or held in an ISA, or as a PEP transfer.
Mr Davies believes the plan will "appeal to investors who like the idea of a minimum return even if the stock market falls, and the possibility of an even better return if the stock market does well."
However, the guaranteed return does not apply if the plan is cashed in early. If this is the case, the customer may get back less than the amount invested.