ISA best seller: the opportunity for 10% per year
Earlier this year the FTSE closed at its highest level on record, but where will the market be in one year, or two year’s time? If you’re not confident it will rise significantly, but would like to achieve double digit returns even if the FTSE only rises a little, the Enhanced Kick Out Plan may be worth a closer look.
The plan has a maximum term of six years, but will ‘kick out’ provided the level of the FTSE 100 Index at the end of any plan year is higher than its value at the start of the plan (subject to averaging). If it is, then you will receive 10% for each year invested (not compounded), plus your initial investment back.
If the Index is lower at the end of every year, no growth return is achieved and your initial capital is returned in full unless the FTSE has fallen by more than 40% at maturity from it's initial level. If it does, your capital will be reduced by 1% for each 1% fall, so there is a risk you could lose some or all of your initial investment.
This investment is our best selling growth plan with ISA investors over the last 12 months, and whilst the FTSE remains high, the opportunity for over 10% growth in as little as 12 months could be appealing to investors.
- Potential Return: 10 % per annum in years 1, 2, 3, 4, 5 or 6
- Alternative collateralised option also available featuring additional protection, returning a potential 7.80% pa from year 2 onwards**
- Capital At Risk Product*
- Investment term - Up to 6 Years
- Arrangement fee applies
- Minimum single investment - £3,000
- Maximum ISA investment - £20,000
- ISA transfers accepted
- Maximum investment - £1,000,000
- The Plan is available for 2017/18 Stocks & Shares ISA, 2018/19 Stocks & Shares ISA, ISA Transfer, Direct Investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.
- Investment deadline 2017/18 ISA applications: 5 April 2018
- Investment deadline ISA transfers: 6 April 2018
- Investment deadline for direct and 2018/19 ISA applications: 27 April 2018
*The return of your initial investment depends on the performance of the FTSE 100 Index and the ability of the counterparty (Investec Bank Plc) to repay your money.
**An alternative collateralised option is also available paying a slightly lower potential return of 7.80% which has the potential to kick out annually from year 2 onwards, and has an additional protection feature designed to reduce the risk of potential loss to your investment in the event that Investec Bank plc, as counterparty to the Plan, fails or becomes bankrupt. The risk to your investment will instead be dependent on either the solvency of four UK financial institutions: Aviva plc, Barclays Bank plc, HSBC Bank plc and Lloyds Bank plc. Please see the factsheet and brochure for details
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.