Defensive best seller: potential for up to 43.5% growth...
The Step Down Kick-Out Plan from Investec will ‘kick out’ and return your original investment along with 7.25% for each year invested (not compounded), provided the level of the FTSE 100 Index is above the required level at the end of each year.
The required level is 100% of its starting value at the end of year 2, and then reducing by 5% each year thereafter, down to 80% in the final year. So if the plan kicks out in the final year, you would receive 43.5% growth along with a full return of your initial investment.
If the FTSE is below the required level each year no growth return will be achieved, and at the end of the plan your original capital will be returned unless the FTSE 100 Index has fallen by more than 40% from it's initial level. If it has, your initial capital will be reduced by 1% for each 1% fall, so you could lose some or all of your initial investment.
This plan is our best selling defensive investment, and so maybe it’s the balance between a good level of growth and still receiving a return even if the market goes down slightly, that makes it so popular.
Potential Return: 7.25
% per annum in years 2, 3, 4, 5 or 6
Alternative collateralised option also available featuring additional protection, returning a potential 5.9% pa**
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 5.9% which 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.