6.35% each year even if the FTSE only rises by a single point…
With the recent volatility in the markets this could be an uncertain time in the investment climate. If you’re not confident the FTSE 100 will rise significantly, but would like to achieve double digit returns even if it only rises a little, Investec’s 8 Year Kick Out Plan may be worth a closer look.
The plan has a maximum term of eight years, but will ‘kick out’ provided the level of the FTSE 100 Index at the end of any plan year is the same or higher than its value at the start of the plan (subject to averaging), from year 2 onwards. If it is, then you will receive 6.35% 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 100 has fallen by more than 40% at the end of the plan. 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.
The six year version of this investment is historically our best selling growth plan and with the opportunity for6.35% annual growth, we are seeing this eight year plan to be equally as popular.
Potential Return: 6.35% per annum in years 2, 3, 4, 5, 6, 7 or 8
Capital At Risk Product
Available for Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: Maximum 8 Years
Arrangement fee applies
Minimum single investment: £3,000
Maximum ISA investment: £20,000
Maximum for ISA transfers and non-ISA investments: £3,000,000
ISA Transfer Applications: 23 October 2020
Direct & ISA Applications: 6 November 2020
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.
Important Information: This is a structured investment plan which 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 underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.