Investment News Our Most Popular Investment Plan Offers 725percent Fixed Income 18471838
Our most popular investment plan offers 7.25% fixed income
29 June 2012 / by Oliver Roylance-Smith
Plus a potential 0.5% annual bonus…
“Since the start of the new tax year, the Bonus Income Plan from Investec has been our most popular investment, and here’s why. The latest version offers the highest rate ever from this plan, with a fixed income of 7.25% each year and the potential for a 0.5% bonus for each year the FTSE 100 finishes higher than its starting value.
Another reason for its popularity is that since your annual income is not dependent on the FTSE, you know the minimum return from day one. Your capital is at risk should the FTSE fall by 50% during the investment and also remains below the starting value at the end of the 5 year term. Based on yesterday’s closing value it would have to fall below 2,762.
Five year fixed rates are currently offering around 4.15% so you are potentially achieving at least an additional 3.1% in return for putting your capital at risk. Clearly many investors have considered this to be an attractive trade off, but you will have to hurry if you want to invest as the current issue closes on 6th July.”
Oliver Roylance-Smith, head of investments and savings
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.