Defensive Plan: potential 5.5% per year growth, even if the FTSE falls by 20% over six years…
Defensive investments normally offer the potential for growth, even if the market goes down slightly, and this new investment from MB Structured Investments could be very attractive.
This plan will ‘kick out’ and return your initial capital plus 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 105% of its starting value at the end of year 1, reducing by 5% each year of the 6 year term, down to 80% in the final year. So the plan could offer 5.5% returns, even if the FTSE falls by 20%.
If the FTSE is below the required level each year, no growth is achieved and your original capital will be returned, unless the FTSE 100 Index has fallen by more than 35% 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.
Depending on your views of what might happen to the FTSE in the coming years, this plan offers the opportunity for investment level returns, even if the market goes down slightly.
Potential Return: 5.5% per annum in years 1, 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: £5,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 13 January 2021
Direct & ISA Applications: 27 January 2021
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.