Defensive best seller: potential for up to 40.5% growth…
The Step Down Kick-Out Plan from Investec will ‘kick out’ and return your original investment along with 6.75% 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 40.5% 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: 6.75% per annum in years 2, 3, 4, 5 or 6
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 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: 28 June 2019
Direct & ISA applications: 19 July 2019
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.