The opportunity for up to 12.5% growth per year, for up to 10 years…
This plan offers high growth potential if the market stays flat, goes up, or even goes down slightly, whilst also offering some capital protection even if the market falls up to 30%.
For more defensive investors who do not think the FTSE 100 Index will rise in the medium term, Option 1 offers 8% per year provided the FTSE has not fallen by up to 17.5% at the end of the term, whilst Option 2 offers 10.25% provided the FTSE is the same or above its value at the start of the plan. For those looking for higher growth returns, Option 3 offers 12.5% for each year invested provided the Index has risen by at least 5%. All three options are measured each year from year 2 onwards.
If the value of the Index is below the required level at the end of each year for the full ten year term, then no investment growth will be paid, and the return of your initial capital is conditional on the FTSE 100 Index not falling by more than 30% at the end of the term. If it does, your capital will be reduced by 1% for each 1% fall, so you could lose some or all of your initial investment.
By combing high growth potential, three investment options, and some capital protection against a falling market, this plan offers a balance of risk versus reward that could appeal to wide range of investors.
Potential Return: 12.50% for each invested (not compounded), if the FTSE rises 5% or more
Alternative Options: 10.25% pa if the FTSE is at or above its starting level, or 8.0% pa if the FTSE falls up to 17.5% over the full term
Maturity: potential to mature (kick out) each year from year 2 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 10 Years
Arrangement fee applies
Minimum single investment: £5,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer applications: 28 November 2018
Direct & ISA applications by cheque: 12 December 2018
Direct & ISA applications by bank transfer: 18 December 2018
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.