The opportunity for 14% in 2 years, even if the FTSE falls by 8%…
If the FTSE had gone down by 8% in 2 years’ time, and you still received 14% growth along with a return of your initial capital, how would you view this investment?
The Investec/Lowes 8:8 Plan has a maximum term of eight years, but will ‘kick out’ provided the level of the FTSE at the end of each six month period from year 2 onwards, is not more than 8% below its value at the start of the plan. If it kicks out, you receive 3.5% for each six month period invested (not compounded) and your initial capital back – that’s a potential 14% in just 2 years.
If the plan does not kick out early, at the end of the term your initial capital is returned in full unless the Index has fallen by more than 40%, measured at the end of the plan term. If it has, your capital will be reduced by 1% for each 1% fall, and so you could lose some or all of your initial investment.
Investment plans that offer the opportunity to kick out seem to remain popular in all markets, but defensive plans more so when the FTSE is at high levels. For those looking for investment level returns even if the market falls up to 8%, this is certainly worth a closer look.
Potential Return: 3.5% for each six monthly period (7% pa) from year two onwards
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: 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.