The opportunity for 5.5% pa even if the FTSE falls by up to 35%…
If you are about to make an investment in the UK, asking yourself where the FTSE 100 Index might be in the next 5 or 6 years is a fair question to consider, especially with recent stock market uncertainty. Depending on your answer, this plan may be worth a closer look.
The FTSE 100 Defensive Step Down Kick Out Plan will ‘kick out’ and return your original investment along with 5.5% 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, then reducing each year down to 65% in the final year.
If the FTSE is below the required level each year, no growth return will be achieved at the end of the plan and your original capital will be returned, unless the FTSE 100 Index has fallen by more than 40% at the end of your investment. 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.
The longer running FTSE 100 Step Down Kick Out Plan from Investec has been one of our best selling defensive investment over the last 12 months, and we are seeing this more defensive version just as popular.
Potential Return: 5.5% per annum in years 2, 3, 4, 5 or 6
Capital At Risk Product
Available for both 2019/20 and 2020/21 Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: Maximum 6 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: 3 April 2020
2019/20 ISA Applications: 3 April 2020
Direct & 2020/21 ISA Applications: 24 April 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.